SYNDICATE BANK

STRENGTHS
Strong rural presence: This is key strength of Syndicate Bank as it has a strong presence
in the rural India. Rural India is having big growth potentials as the urban areas are
becoming saturated and are facing stiff competition . In the past it has achieved the rare
feat of opening 1 million rural accounts in just a short span of 3 months.
To help protect its core banking systems and its nationwide network of bank branches
and Automated Teller Machines (ATMs), Syndicate Bank is the first public sector bank
in India to implement UTM(unified threat management solutions) as the principal
security technology for its core network and banking systems.
Strong schemes pertaining to the agricultural sector. For example-Synd kishan tatkal,
Synd jai kishan and Finance for HI-tech Agriculture to name a few.
Strong employee network of 26,907 employees which is 5% of the whole banking
sector( public sector banks)
Since the third quarter of this financial year (2013-14), the bank has taken various steps
to recover bad loans and arrest the deterioration in asset quality, he said. The slippages
have begun to slow down from the third quarter. In Q3, the slippage stood at 691 crore
compared to Q2 slippages of 1,303.84 crore and 1,740.59 crore, respectively.

WEAKNESS
Global credit rating agency Moody's Investors Service has downgraded Indian
state-run lender Syndicate Bank's standalone bank financial strength rating to 'D'
from 'D+', citing the bank's weak asset quality
Syndicate bank has less presence in other parts of India except Karnataka (580
branches) and next it has 359 branches in Andhra Pradesh

Syndicate bank has very less number of branches (3300) as compared to some big
bank like SBI which has 17000 branches
Syndicate bank has got only 1 International branch which is situated in London

OPPORTUNITIES
State-run Syndicate plans to open more branches abroad along with strengthening its
presence in the country. The bank would be approaching RBI soon for permission to open
branches in South Africa, Thailand, Abu Dhabi, China and Hong Kong, Jain told reporters
at a press meet here today.

(Kannur June 21, 2014 ; Source: Economics Times)

Syndicate Bank has opened an all-womens branch at Ajmer Makhupura, Jaipur. Sudhir
Kumar Jain,CMD of Syndicate Bank inaugurated the branch.

(Bangalore March 25,2014 ; Source: Business Line)

Favouring consolidation in banking, Finance Minister Arun Jaitley said in his budget
speech that he intends to reform the banking sector and give banks more autonomy to
expand faster. Jaitley said the government will cut its stake in state-run banks by selling
shares to retail investors and also consider giving greater autonomy to these banks.
( Budget 2014 July 10,2014 ; Source: Livemint)

 To act as a Financial Supermarket, Bank has tied up as a corporate distributor with the

following Mutual Fund Asset Management Company (AMC).

i.

Birla Sun Life Asset Management Company Ltd.

i.

DSP Black Rock Investment Managers Pvt. Ltd.

ii.

Franklin Templeton Asset Management (India) Pvt. Ltd.

iii.

HDFC Asset Management Company Ltd.

iv.

ICICI Prudential Asset Management Company Ltd.

v.

IDBI Asset Management Ltd.

vi.

Reliance Capital Asset Management Ltd.

vii.

SBI Funds Management Private Ltd.

viii. UTI Asset Management Company Pvt. Ltd.

ix.

Birla Sun Life Asset Management Company Ltd.

THREATS
The outdated, unfriendly interface of http://www.syndicatebank.in/ poses a great threat in
acquiring new customers. In this digital age, where internet banking is the need of the hour,
outdated HTML technology sites do not appeal to young bankers, thereby, losing out on a major
chunk of the customer market.
According to the Budget 2014, a new reform to provide more banking licenses - in both universal
and differentiated bank model - has been introduced. This can become a threat to Syndicate bank
as it poses the risk of high competition.
The gross non-performing assets (NPA) were Rs.4, 611.13 crore compared with Rs.2,978.50 crore
during the same period last year. Percentage of gross NPA stood at 2.62 per cent compared with
1.99 % last year.
( May 7,2014 ; Source: Business Line)