Syndicate Bank

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CHAP 1

INTRODUCTION

1.1 Industry Profile

1.2 Company Profile
1.3 Product Profile

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1.1 INDUSTRY PROFILE

Commercial banks in India have traditionally focused on meeting the short-

term financial needs of industry, trade and agriculture. At present, there are
286 scheduled commercial banks in the country, with a network of 67,742
branches. Scheduled commercial banks are the ones that are listed in the
second schedule to the RBI Act, and may further be classified as public sector
banks, private sector banks and foreign banks Scheduled commercial banks
have a presence throughout India, with nearly 69.72% of bank branches
located in rural or semi-urban areas of the country. A large number of these
branches belong to the public sector banks.

Public sector banks make up the largest category of banks in the Indian
banking system. There are 27 public sector banks in India. They include the
SBI and its associate banks and 19 nationalized banks. Nationalized banks
are governed by the Banking Companies (Acquisition and Transfer of
Undertakings) Act 1970 and 1980. The banks nationalized under the Banking
Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980 are
referred to as „corresponding new banks‟. Syndicate Bank is a corresponding
new bank, nationalized in 1969 under the Bank Acquisition Act.

Public sector banks operate in the remotest possible areas of the country and
give employment opportunity to one and all. Contrary to their private sector
counterparts, technological up gradation is still in infancy in public sector
banks. The most astonishing feature of the public sector banks is that many
employees are not computer literate and the personnel‟s average age is 40+.
These banks are also subject to limited government interference. But the last

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decade has seen many positive developments in the Indian banking sector.
These banks have established an outstanding track record of innovation,
growth and value creation. While bank lending has been a significant driver of
GDP growth and employment, periodic instances of the “failure” of some weak
banks have often threatened the stability of the system. But nonetheless, the
banking sector is the fastest growing and the most flourishing sector in the
Indian economy. The major players in this sector are private and public sector
banks.

Though the banking sector is going through a rough patch nowadays, still this
sector contributes the most to the world GDP. These banks should strive to
penetrate the untapped areas of the market to overshadow the downward
trend in this sector.

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1.2 COMPANY PROFILE

“The difference between a successful person and others is not a lack of

strength, not a lack of knowledge, but rather lack of will”

Syndicate Bank was established in 1925 in Udupi, and was originally known
as Canara Industrial and Banking Syndicate Limited. It was renamed as
Syndicate Bank Limited with effect from Jan 1, 1964 and was nationalized in
1969. It was started with a capital of Rs.8000/- by three visionaries - Sri
Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.
T M A Pai, a physician. Their objective was primarily to extend financial
assistance to the local weavers who were crippled by a crisis in the handloom
industry through mobilizing small savings from the community. The bank
collected as low as 2 annas daily at the doorsteps of the depositors through
its Agents under its Pigmy Deposit Scheme started in 1928. This scheme is
the Bank's brand equity today and the Bank collects around Rs. 2 crore per
day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of
progressive banking in India. Spanning over 80 years of pioneering expertise,
the Bank has created for itself a solid customer base comprising customers of
two or three generations. Being firmly rooted in rural India and understanding
the grass root realities, the Bank's perception had vision of future India. It has
been propagating innovations in Banking and also has been receptive to new
ideas, without however getting uprooted from its distinctive socio-economic
and cultural ethos. Its philosophy of growth by mutual sustenance of both the
Bank and the people has paid rich dividends. The Bank has been operating
as a catalyst of development across the country with particular reference to
the common man at the individual level and in rural/semi urban centers at the
area level.

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Syndicate Bank today is placed in the league of large and leading public
sector banks in India. The bank is a pioneer in introducing several initiatives
such as agricultural financing and door-to-door banking, which are now
recognized as benchmark by the industry. The bank offers wide gamut of
services including deposits, corporate and retail loans, cash management,
foreign trade services, cards, insurance. Syndicate bank has won accolades
for its service in rural communities and achieving exemplary customer service
is an ongoing priority for the bank. The bank has a large network of 2,125
branches in India with overseas presence in London and boasts of a
workforce of over 25000 employees.

In addition, it has been managing exchange companies in the Middle East to

channelize remittance from expatriates to India. The Bank has launched an
ambitious technology plan called Core Banking Solution (CBS) whereby 500
of our strategic branches with their ATMs are being networked nationwide
over a 4 year period. The bank has made steady progress over the years and
has had a consistent performance throughout.
The IT initiatives of the Bank have been amply recognized and rewarded both
nationally and globally, which can be seen from the following awards won by
the Bank during this year.

1. Best use of IT for customer service in Semi-urban and Rural areas by

IDRBT, Hyderabad.
2. Best Core Banking Project among Large Banks in Asia Pacific Region
– The Asian Banker IT Implementation Awards
3. The Asian banker IT implementation AWARD 06 for best core banking
project for large banks

The bank is known for its customer friendly approach. The bank is committed
to providing high quality customer service and timely redressal of customer
grievance.

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1.3 PRODUCT PROFILE

A. BANKING ACTIVITIES : This activity includes the following :

1. Syndicate Bank Global Debit Card

2. Syndicate Bank Global Credit Cards

B. BANCASSURANCE: The bank provides insurance services in

association with Bajaj Allianz.

1. Life Insurance Products

2. Non Life Insurance

Some of its life-insurance products in association with Bajaj Allianz are :

a. INVESTGAIN
b. CASHGAIN
c. CHILDGAIN
d. RISKCARE
e. TERMCARE
f. LIFETIMECARE
g. SWARNA-VISHRANTI
h. UNITGAIN
i. LOAN PROTECTOR
j. SYNDDRIVER

3. Cash Management (SCMS)

C. DEPOSIT SCHEMES :
1. Synd 400 Plus and Synd 500 Plus

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2. Savings Deposit Account:

3. Special Premium Savings Accounts
4. Fixed Deposit Scheme:
5. Vikas Cash Certificate:
6. Social Security Deposit:
7. Senior Citizen‟s Security Deposit
8. Syndicate Suvidha Deposit
9. Cumulative SyndTaxShield Deposit Scheme
10. Pigmy Deposit
11. Super Premium Savings Bank Account
12. Synd Samanya Savings Bank Account (No Frills Account) :
13. SyndFlexi Current Account

D. SYND BANK SERVICES (BPO): It is a wholly owned subsidiary of

Syndicate Bank. This is a first BPO outfit of a Nationalized Bank. This
BPO Company is proposed to undertake the following activities
facilitating customers to file their income tax returns, undertaking Back
Office functions relating to Bank's Debit / Credit Card / Bancassurance
Business etc.

E. LOAN PRODUCTS :

a. SyndRent
b. SyndSaral:
c. SyndSenior:
d. SyndVidyarthi:
e. SyndNivas:
f. SyndNivasPlus:
g. SyndPigmy:
h. SyndKisan:
i. SyndVahan:
j. SyndLaghuUdyami:

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k. SyndMahila:
l. SyndMortgage:
m. SyndPravasi:
n. SyndSmallCredit:
o. SyndSuvidha:
p. SyndUdyog:
q. SyndVyapar:
r. SyndJaiKisan
s. SyndShakti

F. AGRICULTURAL LOAN PRODUCTS :

1. Animal Husbandry Scheme

2. Development of Irrigation Infrastructure

3. Farm Mechanization Schemes

4. Hi-tech Agriculture
5. SyndJaiKisan
6. Jewel Loans for Agriculture
7. Land Development Schemes

8. Purchase of Land for Agricultural Purpose

9. Rural Employment Generation Program

10. Solar Water Heater Systems

11. Syndicate 2/3/4 Wheelers Scheme

12. Syndicate Farm House Scheme
13. Syndicate Kisan Credit Card(SKCC)
14. Tenant Farm Loan

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G. OTHER SERVICES :
1. Tele Banking
2. Internet Banking
3. „Any Branch Banking‟
4. Synd Bill Pay

5. On-Line Collection of Direct Taxes

6. On-line Railway Ticket Booking
7. Western Union Money Transfer
8. SyndInstant - (RTGS System for instant transfer of funds)
9. Electronic Funds Transfer (EFT) System
10. Syndicate Gift Cheques
11. Insurance Cover for Deposits
12. Stop Payment Facility
13. Dormant Accounts
14. Safe Deposit Lockers

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CHAP 2

ORGANIZATION STRUCTURE

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ORGANISATION CHART

BOARD OF DIRECTORS

CHAIRMAN & MANAGING

DIRECTOR

EXECUTIVE DIRECTOR

General Managers

Portfolios

1. Corporate Credit Division – I (CCD-I) 9. Priority Sector Credit Dept

2. Corporate Credit Division – II (CCD-II) 10. Premises & Maintenance
Dept
3. Retail Banking Department 11. General Administration
Dept
Board Secretariat,
Chief Compliance
Officer
4. Planning & Development Dept 12. Central Accounts & Legal
Dept
5. Recoveries Dept 13. Personnel Department
6. Dept. of Information Technology 14. Inspection Department
7. Risk Management & Monitoring Dept. 15 Vigilance Department
8. Treasury & International Banking Division

Regional Offices

Branches

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Chap 3

FUNCTIONAL AREAS

3.1 Accounts
3.2 Audit and inspection
3.3 Credit
3.4 Human resources
3.5 Information technology
3.6 Insurance
3.7 Planning and development
3.8 Recovery
3.9 Risk management
3.10 Retail banking

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3.1 ACCOUNTS

The functions of this department are:

1. Maintaining Books Of Accounts : The accompanying financial

statements are prepared following the “going concern” concept on
Historical Cost basis and conform to the statutory provisions and
prevailing practices, of the countries concerned, except wherever
otherwise stated.

2. Inter Branch Reconciliation: This department does not only involve

maintaining books of accounts, but it also has several other functions.
One of the main functions of this department is, Inter branch
reconciliation. Through this, Inter bank transactions between CBS
branches are reconciled through the system on a real time basis so as
to detect inconsistencies between them.

3. Handling Cash Management Services: Another important function of

this department is to handle CMS ( Cash Management Services )
operations. . CMS is a volume based business that has varying peaks
and lows, which means to maximize its advantages banks have to
manage processes at peak loads not only on peak days and weeks but
at all times.

4. Maintain government deposits: This department also helps the bank

to maintain the government deposits like bonds, bills etc.

5. Handle tax related matters: Apart from this, all the tax related matters
are also handled by this department. Thus, this department also
handles issues related to income tax, corporate tax etc.

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3.2 AUDIT AND INSPECTION

The important functions of this department are:

A. Audit and Inspection: Conducting audit and inspection is one of the

most important functions of the bank. It is mandatory for the bank to
periodically review its performance as well as the books of accounts.
As per the RBI, it is allowed to publish its financial statements only after
proper audit. Taking into account the regulatory expectation, business
profile and risk perceptions, policies and procedures covering
inspections and audits are periodically reviewed and improvements are
carried out. The inspection policy, which is in existence since 2000, is
revised incorporating subsequent changes in the system and also to
suit the present day needs.

B. Vigilance: Vigilance administration is an important aspect of

management function and is aimed to improve the efficiency and
effectiveness of the organization. Investigations are carried out
expeditiously and disciplinary proceedings are conducted in time.
Stress has been laid on preventive vigilance by initiating preventive
studies at branches, conducting preventive vigilance training at SIBM
and all the other major training centers and constituting Preventive
Vigilance Committee at the branches with staff strength of 15 and
above with a view to ensure strict adherence of systems and
procedures.

C. Providing Information Under The Right To Information Act, 2000

(RIA): A person who desires to obtain any information under this Act
shall make a request in writing or through electronic means along with
such fees which will be prescribed by the respective Bank to the

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Assistant Public Information Officer. On receipt of a request for

information, the Asst Public Information Officer , as expeditiously as
possible and in any case within 30 days of receipt of the request, in
consultation with Chief / Public Information Officer shall either provide
the information or reject the request for any other reasons specified in
Section 8 & 9 of the Act. If the information sought for concerns the life
or liberty of a person, the same shall be provided within forty-eight
hours of the receipt of the request. In case of rejection, the same shall
be communicated to the person who has made the request along with
the reasons for such rejection, the particulars of the Appellate Authority
and the period within which an Appeal against such rejection may be
preferred.

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3.3 CREDIT

The important functions of this department include:

A. Credit n policy formulation: the basic function of this department is to

formulate policies and to regulate the advances. The advances details
of the bank are :
1. Global advances – Rs. 52839 crore
2. Domestic advances – Rs. 47233 crore
3. Priority sector credit – Rs. 18441 crore
4. Agricultural credit – Rs. 8050 crore
5. Retail credit – Rs. 13824 crore
6. Advances to housing loans – Rs. 4894 crore
7. Credit flow to export credit – Rs. 1958 crore
8. Global credit-deposit ratio – 67.2%

The advances plan of the bank is:

1. Global advances to reach Rs. 62657 crore

2. Domestic advances to reach Rs. 56983 crore
3. Priority sector credit to reach Rs. 23971 crore
4. Agricultural credit to reach Rs. 8700 crore
5. Retail credit to reach Rs. 17552 crore
6. Credit flow to export credit to reach Rs. 2298 crore
7. Global credit-deposit ratio to reach 63.73%
8. SME advances to reach Rs. 5400 crore
9. Add one lakh SyndVidyarthi accounts.

B. Small and Medium Enterprises (SME ): The SME forms one of the
priority areas of the bank. For its development, the bank has launched
several loan schemes like :

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1. Synd Udyog
2. Synd Vyapar
3. Synd Laghu Udhyami Credit Card (SLUCC)
4. Synd Swarozgar Credit Card (SSCC)
5. Synd General Credit Card (SGCC)
6. Synd Small Credit
7. Synd Shakthi

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3.4 HUMAN RESOURCES

“Be nice to people on your way up because you meet them on your way
down”

Training: A great deal of emphasis is given on training of employees in each

cadre including women and sc/st employees. SIBM (Syndicate Institute of
Bank Management) was established in November 1987 and is the apex
training institution of Syndicate Bank for honing skills in banking and
management for the bank's executives and senior personnel. Training
activities of the Bank are governed by the policies and procedures laid down
in the Training Manual. Training programmes are classified into two
categories, general programmes and special programmes. 40 General
Programmes, in branches like Risk Management, Credit Management,
Recovery Management, Internal Control Management, Human Resource
Management, Marketing and Quality Improvement, Foreign Exchange,
Information Technology, are identified and their course contents, target
groups are listed in the Training Manual. Special programmes are designed
based on the recommendations of the Departments at Head Office and
Corporate Office, taking into account the Corporate Goals, Policies,
requirements, business plans and strategies, target group etc

Industrial Relations: The employer-employee relations are cordial.

Periodical discussions are held with the representatives of recognized
registered trade union of workmen and officers, both at the corporate and
regional offices contributing to healthy industrial relations in the bank.
The HR Policies of the Bank are geared to meet the corporate objectives of
sound and profitable growth.

Recruitment: Taking into consideration the existing manpower, its age

profile, likely attrition, the emerging scenario, need for additional manpower to
support the growth and diversification of business, need for skilled staff to

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work in the networked banking environment and also the priorities attached to
agricultural sector under the National policy, the Bank has undertaken direct
recruitment of General Banking Officers, Specialist Officers in the area of
Agricultural Finance, Information Technology, Accounts and Financial
Management, Security, Law, etc. The bank does not have a one-sided
recruitment policy, i.e., it believes in recruiting people not only from the upper-
strata but also from the lower strata of the society. The recruitment policy of
the bank lays more emphasis on “quality” and believes in giving equal chance
to every one. The bank recruits through many sources like campus
placements, bank‟s website, walk-ins, employment exchanges etc. The short
listed employees have to go through a series of interviews to be selected.

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3.5 INFORMATION TECHNOLOGY

“We cannot function with yesterday’s tools and still remain in business
tomorrow”

The bank has created this dept to promote computer literacy among
employees, to upgrade communication to develop electronic banking
capabilities. Presently all branches are computerized. All 156 ATMs are
interconnected to the Financial Transaction Switch and all the customers of
CBS branches can use them. The bank has joined the Real Time Gross
Settlement System (RTGS) and 397 branches of the bank are RTGS enabled.
Syndicate Bank has chose i-flex‟s FLEXCUBE® and IBM‟s infrastructure
technologies and implementation services to upgrade its system.

The Bank is first among Public Sector Banks to implement Core

Banking Solutions (CBS) which is known by the brand name "Syndicat-
e-banking". The bank commenced implementing “Core Banking
Solutions” (CBS) of Infosys during 2004. During the current fiscal CBS
coverage was further consolidated. Overall CBS network of the Bank
increased to 1852 branches / offices spread across 1,052 centers and
accounted for about 96% of the Bank's business.
Under the CBS project, the bank has set up its own Data Centre, while
the Disaster Recovery Site has been co-hosted at the vendors place. In
order to ensure near zero data loss, the Bank has set up a Near Site at
Mumbai.
This makes remittance of funds, collection facilities, cheque clearing
instant. New products and services can be launched and MIS reports
can be generated without losing time.
The Bank has also implemented online Tax Accounting System at 324
designated branches to handle Direct Taxes.

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The Bank has installed a High Tech Video Conferencing facility at

around 40 locations across the Country. This facility is used
extensively for interaction of Top Management with the operation
Heads for propagating strategies, review of business development and
also for distant learning.
The CBS project has enabled the Bank to deliver banking products /
services in middle delivery channels like networked ATMs, Tele-
banking, Internet Banking and SMS Banking, so as to provide
Anywhere Anytime Anyhow (AAA) Banking services to customers
Branches are computerized with 3 types of software deployed at the
branches :

Core banking solutions (CBS) – 70 branches (all networked)

Total banking mechanization – 1% branches (branch network)

ACPM branches – 29% of branches (stand alone system)

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3.6 INSURANCE

The bank has also entered the insurance sector and has tie-ups with some of
the major companies of the insurance world.

The bank provides the insurance cover association with Bajaj Allianz Life
Insurance. Allianz Bajaj Life Insurance Company has signed a memorandum
of understanding with Syndicate Bank for distributing its insurance products
through the bank's pan-India branch network.

CP Swarankar, the bank‟s CMD said Syndicate Bank was already reaping the
fruits of this focus on financial inclusion. This focus is expected to boost the
bank‟s share of CASA (current account and saving accounts) base.

1. The following products are now marketed:

2. Investigain

3. Cashgain

4. Childgain

5. Riskcare

6. Termcare

7. Lifetimecare

8. Swarna-vishranti

9. Unitgain

10. Loan Protector

11. Synddriver

12. syndsuraksha
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3.7 PLANNING AND DEVELOPMENT

“Planning unfolds the unexpectedness of the future well in advance to

strategize actions for continuation of journey against odds”

Planning is a strategic tool of the management to chart out the future course
of action. The plan for the year 2008-09 is:

1. Acquire accounts aggressively: It is a bad patch currently, still

it aims to increase its customer base. This theme is a conscious
effort to replicate its outstanding performance under “1 million
accounts “campaign launched in the previous year.
2. Add core deposits continuously: core deposits are cost
effective deposits that help the bank to overcome the effect of
reduced spread. More of core should be the “mantra” of this
year. This would enable the bank to post higher profits.
3. Year of NPA resolution: The qualities of assets decide the
quality of profits. It is the responsibility of every employee to
commit himself/herself fully to the task of increasing the
recovery and reduce the NPAs.
4. Targets : The targets set by the bank are :
a. Global deposits to reach Rs. 102000 crore with a growth
of 29.71%
b. Domestic deposits are projected to grow at 30.43% to
reach Rs. 97000 crore.
c. Core deposits are projected to grow at 41.17% to reach
Rs. 64000 crore.
d. Current deposits are projected to grow at 26.75% to
reach Rs. 9500 crore.

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e. Security deposits are projected to grow at 30.52% to

reach Rs. 21500 crore.
f. Low cost deposits are projected to grow at 29.34% to
reach Rs. 31000 crore.
g. Pigmy deposits are projected to increase from Rs. 1530
crore to Rs. 2400 crore.
h. NRI deposits are projected to grow at 22% to reach Rs.
3100 crore.
i. Bulk deposits at finer rates will be restricted below Rs.
30000 crore.
j. Customer base to increase by 3 million to 22 million.

The strategies to be followed to achieve the plan are:

1. Low cost deposits and core-term deposits campaign with total staff
involvement.
2. Focus on increased pigmy deposit level through reinvented pigmy
plus 07. Appointment of new pigmy agents
3. Leverage new accounts added during 2007-08 to increase low cost
deposit.
4. Bringing younger generation to banks‟ fold to turn available
production and brand image.
5. Cross selling of our full range of technology driven products,
optimum utilization of our delivery channels.
6. Focused marketing approach to broad base our clientele.
7. Opening of new branches to increases business.
8. Popularization of our products like SyndSamanya, SyndVidyarthi
and SyndSenior to increase customer base.

Another important function of this department is Budgeting, i.e., preparing

financial budgets for the coming fiscal.

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3.8 RECOVERY

The bank has a comprehensive recovery policy, which covers

restructuring/rescheduling of loans, settlement policy, corporate debt
restructuring mechanism, seizure and disposal of assets under the
Securitization Act, and the filing of suits and enforcement of decrees.
The main functions of this department are:

1. Handling DRT cases: Debt Recovery Tribunals (DRTs) are set up by

the Centre to reduce the non-performing assets (NPAs) of banks and
to provide fast disposal of such cases. The recent Supreme Court
judgment makes it mandatory for banks to withdraw all cases pending
before the debt recovery tribunal (DRT) prior to taking action under
Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest (Sarfaesi) Act 2000. The appeals can be made at
DRTs only after the assets have been seized by the lenders. In other
words, the Supreme Court judgment does not curb the lenders' power
to seize. As a result of this, the lenders will have control over secured
assets even before the case is heard at a DRT. This will ensure safe
upkeep of the assets and prevent erosion in security value during the
litigation as it happens in the case of those companies that are referred
to the Board for Industrial and Financial Reconstruction (BIFR).

2. Handling BIFR cases: : Banks and financial institutions (FIs) are

opening up a new front in their offensive against defaulters. Lenders
are now busy joining hands to drill a hole in Board for Industrial and
Financial Reconstruction (BIFR) umbrella that for long was being used
by defaulters as a shelter whenever creditors appeared to be on hot
pursuit. Backed by the Securitisation and Reconstruction of Financial

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Assets law that allows lenders to seek abatement of cases pending

before the BIFR, banks and FIs have begun queuing up before the
board seeking withdrawal of the pending cases. This would enable
lenders to resort to the new legislation, which allows takeover and
selling of assets of defaulters. The new law provides that if 75 per cent
of secured creditors (by value) agree, the matter pending before BIFR
would abate.

3. Handling DST Cases: The RBI has suggested setting up of debt

settlements tribunals following the failure of DRTs. This system
involves appointment of a debt recovery officer by the bank who will
issue the demand notice and pass the award

4. Rehabilitation Of Sick Units: As an incentive for proper restructuring

package at the time of rehabilitation, necessary support for business
restructuring, modernisation, expansion, diversification and
technological upgradation as may be felt necessary by the lenders is
also be encouraged by the bank. Support schemes like Credit Linked
Capital Subsidy Scheme in case of units in other (than rural) areas,
KVIC Margin Money Scheme (for units in rural areas) may be extended
for rehabilitation packages also.

5. Out of court settlements: The bank tries to settle any litigation with its
customers before finally approaching the court.

6. Synd Adalat: It is a process wherein the borrowers are given

opportunity to settle their dues under compromise. Such Adalats would

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be organized at General Manager‟s Office / Regional Office/cluster

centers to enable the borrowers to participate in person and put forth
his views.
7. Lok Adalat: For recovery of smaller loans, the RBI has suggested Lok
Adalats. It is voluntary process and works on the principle that both
parties to the dispute are willing to sort out their dispute amicably.
Through this mechanism, disputes can be settled in a simpler, quicker
and cost effective way. Lok Adalats are conducted by State Level,
District Level and Taluk Level Legal Services Authority in the
respective states.

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3.9 RISK MANAGEMENT

Risk is inherent in every business and in daily life. Identifying, monitoring,

measuring and controlling are the major steps in Risk Management. The Bank
has been continuously upgrading and fine-tuning the Risk Management
Systems in tune with international best practices and directions issued by
Reserve Bank of India. The bank has implemented Basel-II as on March 2008
and has complied with the requirements. The Bank has procured Capital
Assessment Model (CAM) from CRISIL to compute capital for credit risk as
per Basel II requirement. The bank has also appointed M/S Ernst & Young as
consultants for operational risk management.
The main functions of this department are:

1. Foreign Exchange: The bank is required to maintain foreign

Exchange reserves as per the RBI guidelines. The total Foreign
Exchange Turnover of the Bank stood at Rs.4,94,837 crore as on
March 2008 as compared to Rs.5,94,983 crore for the previous
financial year. Reduction in arbitrage swaps is the main reason for the
decline in forex turnover.

2. Asset n liability management : The Bank has put in place a robust

Asset Liability Management (ALM) system. ALM is implemented mainly
to measure, monitor and manage market risks, which ultimately results
in increased Net Interest Income of the bank. The Bank is having an
effective high level Asset Liability Committee (ALCO) comprising top
executive so as to measure, monitor and manage risks such as
Liquidity, Interest rate, market, forex etc. bank has implemented the
Asset Liability Management (ALM) system as envisaged by the RBI.
Data collection and reporting of data is done on fortnightly basis to
ALCO. The ALCO has been able to reconstruct the asset and liability

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mix to reduce the risks at desired level., as such it is used for proper
pricing. The bank is in the constant process of fine-tuning and
improving the existing ALM structure system.

3. Gold selling: Syndicate Bank sells gold coins under the brand name
“Syndsona” through its 104 select branches spread across eight
States. The coins in denominations of 4 gm, 8 gm and 10 gm in tamper
proof card with 999.9 purity certificate is sold through its designated
branches. The bank imports the gold coins exclusively from
Switzerland. The bank had tied up with the existing clients and
corporates for the sale of gold coins.

4. Fund Investment and Management: The company also helps its

customers to invest their money in mutual funds, NSC certificates etc.

5. Interest Rate Formulation: The bank has both fixed and floating
interest rates and fixes these rates on the basis of market scenario, risk
involved etc.

6. Managing Overall Credit Rating Of The Bank: Typically, a credit

rating tells a lender or investor the probability of the subject being able
to pay back a loan. The Bank recently reduced its lending rates on
housing loans, consumer credit and loans to women entrepreneurs.
The rate cuts are in 0.25-1.5% range. On March 26, the Bank has
entered into an MoU with CARE, one of the leading credit rating
agencies in the country. The MoU was signed to utilize the services of
CARE for supporting SMEs by making available affordable,
transparent, comprehensive and reliable rating services to enhance
credit acceptance.

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3.10 RETAIL MARKETING

The Bank has been keeping a close watch on the market dynamics and
introduction of new products and services are tailored and customized to suit
the customers' requirements. During the year 2007-08, the Bank has
launched innovative new products and services to its existing portfolio. The
bank has launched various products since its inception to cater to its
customers needs. These products are:

B. PARA BANKING ACTIVITIES :

1. Syndicate Bank Global Debit Card

2. Syndicate Bank Global Credit Cards

C. BANCASSURANCE:

1. Life Insurance Products

2. Non Life Insurance Products
3. Cash Management (SCMS) deposit schemes

D. Deposit schemes

1. Synd 400 Plus and Synd 500 Plus

2. Savings Deposit Account
3. Special Premium Savings Accounts (CBS branches only)
4. Fixed Deposit
5. Vikas Cash
6. Social Security Deposit
7. Senior Citizen‟s Security
8. Syndicate Suvidha

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9. Cumulative Deposit
10. Synd Corporate
11. Suvidha Deposit
12. SyndTaxShield Deposit Scheme
13. Pigmy Deposit
14. Super Premium Savings Bank Account
15. Synd Samanya Savings Bank Account (No Frills Account)
16. SyndFlexi Current Account

E. SYND BANK SERVICES (BPO)

F. LOAN PRODUCTS :
1. SyndRent
2. SyndSaral
3. SyndSenior
4. SyndNivas
5. SyndKisan
6. SyndVahan
7. Synd Laghu Udyami
8. Synd Mahila
9. Synd Mortgage
10. Synd Pravasi
11. SyndSmallCredit
12. Synd Suvidha
13. Synd Udyog
14. Synd Vyapar
15. SyndShakti

G. AGRICULTURAL LOAN PRODUCTS

1. Animal Husbandry Scheme

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2. Development of Irrigation Infrastructure

3. Farm Mechanization
4. Hi-tech Agriculture
5. SyndJaiKisan
6. Jewel Loans for Agriculture
7. Land Development Schemes

8. Purchase of Land For Agricultural Purpose

9. Rural Employment Generation Program

10. Solar Water Heater

11. Syndicate 2/3/4 Wheelers Scheme

12. Syndicate Farm House Scheme
13. Syndicate Kisan Credit Card(SKCC)
14. Tenant Farm Loan

H. OTHER SERVICES :
1. Tele Internet Banking
2. „Any Branch Banking‟
3. Multi City Accounts
4. Synd Bill

5. On-Line Collection of Direct Taxes

6. On-line Railway Ticket Booking
7. Western Union Money Transfer
8. SyndInstant - (RTGS System for instant transfer of funds
9. Electronic Funds Transfer (EFT) System
10. Syndicate Gift
11. Insurance Cover for Deposits
12. Stop Payment Facility
13. Dormant Accounts
14. Safe Deposit Lockers

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15. Tele Banking

16. Internet Banking
17. „Any Branch Banking‟
18. Multi City Accounts
19. Synd Bill Pay
20. On-Line Collection of Direct Taxes
21. On-line Railway Ticket Booking
22. Western Union Money Transfer
23. SyndInstant
24. Electronic Funds Transfer (EFT) System
25. Syndicate Gift Cheques

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CHAP 4

SWOT ANALYSIS

4.1 Swot Analysis

4.2 Vision
4.3 Mission
4.4 Goals
4.5 Objectives

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4.1 SWOT ANALYSIS

STRENGTHS:

1. The bank is a pioneer in introducing several initiatives such as

agricultural financing and door-to-door banking, which are now
recognized as benchmarks by the industry.
2. So far, the bank has won 25 awards for its excellence in providing
banking services. It also offers a wide range of products to serve
various needs of its customers.
3. The bank is the first public sector bank to provide BPO services and is
also ISO certified.
4. The bank is well aware of its social responsibility and has been actively
involved in the development of the society since its inception.

WEAKNESSES:

1. Increasing NPA.
2. Poor qualification of many employees.
3. It has just started implementing its core banking solutions across many
of its branches. Many public sector banks have made much progress in
this area.

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OPPORTUNITIES:

1. It has created a good customer base and it is time that it leverages on

this strength to cross sell and up sell its various products to them.
2. Expansion prospects in retail, SME and agricultural sector.
3. The Bank should enhance its technological capabilities to differentiate
products and services from those of its competitors and continue to
implement its Core Banking Solutions plan.
4. The Bank should also expand its presence in international markets.

THREATS:

1. Increasing competition posed by global and private sector banks.

2. The excessive time taken by the government to give compensation
because of the recent loan waiver announced in the March 2008
Finance Budget.
3. Better performance by private sector banks as well as some of its
public sector counterparts.

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4.2 VISION

Consolidating position as a premier public sector bank with increased

global outreach.
Emerging as a strong, vibrant, responsive, competitive bank.
Embracing state-of-art technology harnessing human potential and
effectively participating in the process of nation building.
Serving its constituents and shareholders‟ as a faithful friendly financial
partner.

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4.3 MISSION

The bank continuously envisages to:

Add core deposits continuously

Offer better customer service

Enhance tolerance level in dealing with customers and get better

understanding of their requirements

Design and deliver the products and services according to its

customer‟s needs so as to give them an exhilarating and enthusiastic
experience.

Acquire accounts aggressively

Year of NPA resolution

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4.4 GOALS

The goals articulated for each of the functional areas of the bank is:

1. Business: To achieve global business of Rs. 200 thousand

crores by March 2009.
2. Resources: To achieve global deposits of Rs. 162000 crore by
March 2009 with emphasis on low cost resources by planned
strategic initiatives including branch expansion, aggressive
marketing and active involvement of each and every employee.
3. Advances: To build qualitative asset base of around Rs. 80000
crore by March 2009 to augment the income portfolio of the
bank.
4. Priority sector credit: To have accelerated and qualitative
growth in priority sector lending to reach a level of Rs. 23800
crore, Rs. 10200 crore under agriculture, Rs. 3514 crore under
SME through various customer friendly credit products and to
take maximum advantage of “Financial Inclusion “ so as to
expand the clientele base of the bank, and provide financial
assistance to all eligible candidates.
5. Information Technology: To harness state-of-art technology
and network all branches so as to make available reliable MIS
for DSS and deploy best practices in Information Security to
manage the business effectively and profitably.
6. Management of assets : To make 2008-09 truly a “year of NPA
resolution” by striving for getting “A” rating under asset quality by
upgrading NPAs, bringing down gross NPA and net NPA level
both in absolute and percentage terms below march 2008 figure
and accomplish NPA recovery target as per commitment.
7. Foreign exchange and treasury: To profitably manage the
forex and investment assets of the bank to achieve an export-

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import turnover of Rs. 15000 crore and Rs. 12750 crore

respectively. To achieve treasury income of Rs. 2345 crore with
an investment of Rs. 35000 crore.
8. Profitability: To make every branch a profits centre and ensure
best possible returns to the shareholders.
9. Risk management: To continuously upgrade the risk
management systems and processes, imbibe risk management
in business activities and implement Basel II requirements for
the benefit of all stakeholders.
10. Human resources and organizational structure: To mould
and strengthen the organizational structure to meet the future
business requirements and challenges. To redefine and to
redevelop peoples‟ management techniques so as to unleash
human potential, drive growth and nurture leadership of high
quality corporate governance,
11. Customer relationship management : To fine-tune its
marketing strategies to meet the ever growing market odds, to
ensure that our products and services adapt to the changing
needs and expectations of the customers, to provide the
customer the ideal banking ambience, to reorient its publicity so
as to provide increased visibility to its brand.
12. Inspection: To migrate progressively from the present
transaction oriented system to a risk based audit exercise
enhancing the effectiveness of risk management, control and
governance processes.

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4.5 OBJECTIVES

1. To have an overview of the organization.

2. To study the departments of the organization in detail.
3. To know about all the products and services being offered by the
company
4. To gather study the organizational hierarchy of the company.
5. To gather sufficient information about the comoany so as to do its swot
analysis.
6. To give our own suggestions for the betterment of the company.

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CHAP 5 FINDINGS

Findings
Recommendations & Suggestions

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5.1 FINDINGS

1. Syndicate Bank is India‟s seventh largest public sector bank (in terms
of total deposit).
2. It is the 9th most customer friendly bank in India according to Outlook
Money (edition Sep 2007) and secures 11 th position when it comes to
spending on IT according to DQINDIA (edition Jan 2008).
3. As many as 58 per cent of the bank's branches are in rural areas.
4. The average age of the employees is 40+.
5. In BSE, the Bank is listed in Group (B).
6. At CBS branches the working hours are 5½ on and 4 on weekdays
and Saturday respectively. While non CBS branches work for 4 hours
on weekdays and 2 hours on Saturday. At select branches, 7 day
banking is also practiced.
7. Syndicate Bank has become the first public sector bank to enter the
BPO segment. It is one of the first public sector banks to go in for CBS
as well.
8. Syndicate Bank has also been awarded an ISO 9001:2000 certificate.
9. The Bank is a founder member of the “Cash Tree” consortium of 12
Banks with total number of ATMs under the network to over 4500.
10. The bank has tie-ups with companies like Bajaj Allianz, TCS, Emami
Bio-Tech Ltd, Western Union, Sree Kshetra Dharmasthala Rural
Development Project, and RUDSETI etc.
11. The Bank is listed on the National Stock Exchange, Bombay Stock
Exchange and Bangalore Stock Exchange.
12. The layout of the Bank is spacious and has proper seating
arrangement (like chairs, sofa etc.) and water coolers too to make the
customers feel comfortable upon their arrival in the bank.

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5.2 RECOMMENDATIONS

1. The bank has a lot of scope to enhance its retail banking. The keys to
its retail strategy can be developing new products and services,
networking its branch locations, developing its distribution channels
including ATMs and internet banking.
2. The bank should expand its presence in international markets.
3. The bank should also enhance its technological capabilities and
continue to implement its Core Banking Solutions plan. This
connectivity will help it understand its customers better, manage its
customer relationships and allow it to offer a large number of value
added products and to sell its products more effectively.
4. Having such a strong technological base, the bank must use these
capabilities to differentiate its products and services from those of its
competitors.
5. Though the bank has a nationwide presence in the agriculture and
small-scale industry sectors but it still has a lot of scope for
strengthening its priority sector banking business. One aspect of its
strategy could be to further strengthen its ties with the agricultural
community by providing training and social support programs for the
rural populace.
6. Non-performing assets are affected by number of factors e.g.,
increased competition, a recession in the economy , decrease in
agricultural production, decline in commodity and food grain prices,
adverse fluctuations in interest and exchange rates, changes in
Government policies, laws or regulations, business expansion. Since
the bank has huge NPA, it should take measures to mitigate the effect
from these factors.
7. The bank needs to recruit more people to fill up the manpower
requirements arising because of its expansion process. Moreover, the
bank needs to recruit young blood too.

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8. The Bank should market its products more aggressively to attract

more customers and combat competition posed by the private sector
players.

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