Syndicate Bank ______________________________________________________________

CHAPTER: 1 INTRODUCTION

1.1 Industry Profile 1.2 Company Profile 1.3 Product Profile

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Syndicate Bank ______________________________________________________________

1.1

INDUSTRY PROFILE

Commercial banks in India have traditionally focused on meeting the shortterm 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 ______________________________________________________________ 2

Syndicate Bank ______________________________________________________________ the last 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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Syndicate Bank ______________________________________________________________

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. ______________________________________________________________ 4

The bank has made steady progress over the years and has had a consistent performance throughout. 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. Syndicate bank has won accolades for its service in rural communities and achieving exemplary customer service is an ongoing priority for the bank.125 branches in India with overseas presence in London and boasts of a workforce of over 25000 employees. insurance. The IT initiatives of the Bank have been amply recognized and rewarded both nationally and globally. The bank offers wide gamut of services including deposits. corporate and retail loans. The bank is a pioneer in introducing several initiatives such as agricultural financing and door-to-door banking. The Asian banker IT implementation AWARD 06 for best core banking project for large banks The bank is known for its customer friendly approach. 2. Hyderabad. foreign trade services. In addition. 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. it has been managing exchange companies in the Middle East to channelize remittance from expatriates to India. which are now recognized as benchmark by the industry. ______________________________________________________________ 5 . Best Core Banking Project among Large Banks in Asia Pacific Region – The Asian Banker IT Implementation Awards 3. The bank is committed to providing high quality customer service and timely redressal of customer grievance. cash management.Syndicate Bank ______________________________________________________________ Syndicate Bank today is placed in the league of large and leading public sector banks in India. The bank has a large network of 2. cards.

3 Goals 1.2.2.1 Vision 1.2 Mission 1.2.4 Objectives ______________________________________________________________ 6 .2.Syndicate Bank ______________________________________________________________ 1.

competitive bank. Emerging as a strong. Embracing state-of-art technology harnessing human potential and effectively participating in the process of nation building.1 VISION • • • • Consolidating position as a premier public sector bank with increased global outreach.2. Serving its constituents and shareholders’ as a faithful friendly financial partner.Syndicate Bank ______________________________________________________________ 1. ______________________________________________________________ 7 . vibrant. responsive.

• • Acquire accounts aggressively Year of NPA resolution ______________________________________________________________ 8 .Syndicate Bank ______________________________________________________________ 1.2.2 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.

Priority sector credit: To have accelerated and qualitative growth in priority sector lending to reach a level of Rs. 2. ______________________________________________________________ 9 . Rs. 6. aggressive marketing and active involvement of each and every employee.Syndicate Bank ______________________________________________________________ 1. 4. 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. 250 thousand crores by March 2010. 23800 crore.3 GOALS The goals articulated for each of the functional areas of the bank is: 1. 10200 crore under agriculture. and provide financial assistance to all eligible candidates. 170000 crore by March 2010 with emphasis on low cost resources by planned strategic initiatives including branch expansion. 90000 crore by March 2010 to augment the income portfolio of the bank. 5. Advances: To build qualitative asset base of around Rs. Resources: To achieve global deposits of Rs. Rs.2. 3. 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. Business: To achieve global business of Rs. 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 2009 figure and accomplish NPA recovery target as per commitment.

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. 2345 crore with an investment of Rs. 35000 crore. Human resources and organizational structure: To mould and strengthen the organizational structure to meet the future business requirements and challenges. to provide the customer the ideal banking ambience. 12750 crore respectively. 9.Syndicate Bank ______________________________________________________________ 7. Foreign exchange and treasury: To profitably manage the forex and investment assets of the bank to achieve an exportimport turnover of Rs. 11. Profitability: To make every branch a profits centre and ensure best possible returns to the shareholders. 10. to reorient its publicity so as to provide increased visibility to its brand. 12. control and governance processes. imbibe risk management in business activities and implement Basel II requirements for the benefit of all stakeholders. Risk management: To continuously upgrade the risk management systems and processes. ______________________________________________________________ 10 . Inspection: To migrate progressively from the present transaction oriented system to a risk based audit exercise enhancing the effectiveness of risk management. 8. drive growth and nurture leadership of high quality corporate governance. To redefine and to redevelop peoples’ management techniques so as to unleash human potential. To achieve treasury income of Rs. 15000 crore and Rs.

To give our own suggestions for the betterment of the company. To gather sufficient information about the comoany so as to do its swot analysis. 5. To know about all the products and services being offered by the company 4. 2. 6. To have an overview of the organization.2.Syndicate Bank ______________________________________________________________ 1. To gather study the organizational hierarchy of the company.4 OBJECTIVES 1. 3. ______________________________________________________________ 11 . To study the departments of the organization in detail.

CASHGAIN c. TERMCARE f. LOAN PROTECTOR j. Synd 400 Plus and Synd 500 Plus 2. Savings Deposit Account: 3. DEPOSIT SCHEMES : 1. BANKING ACTIVITIES : This activity includes the following : 1. LIFETIMECARE g. Cash Management (SCMS) C. Syndicate Bank Global Credit Cards B. BANCASSURANCE: The bank provides insurance services in association with Bajaj Allianz. SYNDDRIVER 3. CHILDGAIN d. Syndicate Bank Global Debit Card 2. RISKCARE e. UNITGAIN i. INVESTGAIN b. Non Life Insurance Some of its life-insurance products in association with Bajaj Allianz are : a. 1.3 PRODUCT PROFILE A.Syndicate Bank ______________________________________________________________ 1. SWARNA-VISHRANTI h. Life Insurance Products 2. Special Premium Savings Accounts ______________________________________________________________ 12 .

SyndMahila: l. SyndNivas: f. undertaking Back Office functions relating to Bank's Debit / Credit Card / Bancassurance Business etc. SyndMortgage: ______________________________________________________________ 13 . Pigmy Deposit 11. SyndVidyarthi: e. Vikas Cash Certificate: 6. Super Premium Savings Bank Account 12. SyndRent b. SyndKisan: i. SyndPigmy: h. E. SyndSenior: d. Fixed Deposit Scheme: 5. Social Security Deposit: 7. This is a first BPO outfit of a Nationalized Bank. Synd Samanya Savings Bank Account (No Frills Account) : 13. Cumulative SyndTaxShield Deposit Scheme 10. LOAN PRODUCTS : a. SYND BANK SERVICES (BPO): It is a wholly owned subsidiary of Syndicate Bank. SyndSaral: c. SyndLaghuUdyami: k. SyndVahan: j.Syndicate Bank ______________________________________________________________ 4. SyndFlexi Current Account D. SyndNivasPlus: g. Senior Citizen’s Security Deposit 8. Syndicate Suvidha Deposit 9. This BPO Company is proposed to undertake the following activities facilitating customers to file their income tax returns.

SyndJaiKisan 6. Syndicate 2/3/4 Wheelers Scheme 12. Tenant Farm Loan ______________________________________________________________ 14 . Jewel Loans for Agriculture 7. SyndSmallCredit: SyndSuvidha: n. Syndicate Farm House Scheme 13. Solar Water Heater Systems 11. AGRICULTURAL LOAN PRODUCTS : 1. Land Development Schemes 8. SyndUdyog: o. Farm Mechanization Schemes 4. Animal Husbandry Scheme 2. SyndJaiKisan q. SyndShakti F. Syndicate Kisan Credit Card(SKCC) 14. Hi-tech Agriculture 5. Purchase of Land for Agricultural Purpose 9.Syndicate Bank ______________________________________________________________ SyndPravasi: m. Development of Irrigation Infrastructure 3. Rural Employment Generation Program 10. SyndVyapar: p.

Electronic Funds Transfer (EFT) System 10. Synd Bill Pay 5. On-Line Collection of Direct Taxes 6. Syndicate Gift Cheques 11. Insurance Cover for Deposits 12. ‘Any Branch Banking’ 4. On-line Railway Ticket Booking 7. Safe Deposit Lockers ______________________________________________________________ 15 . Tele Banking 2. Stop Payment Facility 13. Western Union Money Transfer 8. OTHER SERVICES : 1. Internet Banking 3. SyndInstant .Syndicate Bank ______________________________________________________________ G. Dormant Accounts 14.(RTGS System for instant transfer of funds) 9.

Syndicate Bank ______________________________________________________________ CHAPTER: 2 ORGANIZATION STRUCTURE ______________________________________________________________ 16 .

Planning & Development Dept Dept 5. Retail Banking Department Dept Officer 4. Personnel Department 14. General Administration Board Secretariat. Corporate Credit Division – I (CCD-I) 2.Syndicate Bank ______________________________________________________________ ORGANISATION CHART BOARD OF DIRECTORS CHAIRMAN & MANAGING DIRECTOR EXECUTIVE DIRECTOR General Managers Portfolios 1. Inspection Department 15 Vigilance Department Regional Offices Branches ______________________________________________________________ 17 . Premises & Maintenance 11. Corporate Credit Division – II (CCD-II) Dept 3. Priority Sector Credit Dept 10. Chief Compliance 12. Recoveries Dept 6. Central Accounts & Legal 13. Risk Management & Monitoring Dept. 8. Treasury & International Banking Division 9. of Information Technology 7. Dept.

Syndicate Bank ______________________________________________________________ CHAPTER: 3 FUNCTIONAL AREAS 3.3 3.9 Accounts Audit and inspection Credit Human resources Information technology Insurance Planning and development Recovery Risk management 3.8 3.5 3.7 3.4 3.2 3.6 3.10 Retail banking ______________________________________________________________ 18 .1 3.

this department also handles issues related to income tax. corporate tax etc. CMS is a volume based business that has varying peaks and lows. all the tax related matters are also handled by this department. One of the main functions of this department is. Maintain government deposits: This department also helps the bank to maintain the government deposits like bonds. bills etc. ______________________________________________________________ 19 . 4. 5. of the countries concerned. 3. Inter Branch Reconciliation: This department does not only involve maintaining books of accounts. Handle tax related matters: Apart from this. Handling Cash Management Services: Another important function of this department is to handle CMS ( Cash Management Services ) operations. . 2. but it also has several other functions. Inter bank transactions between CBS branches are reconciled through the system on a real time basis so as to detect inconsistencies between them.1 ACCOUNTS The functions of this department are: 1.Syndicate Bank ______________________________________________________________ 3. except wherever otherwise stated. Through this. Inter branch reconciliation. Thus. 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. 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.

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 ______________________________________________________________ 20 systems and . Providing Information Under The Right To Information Act. 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 procedures. As per the RBI. Stress has been laid on preventive vigilance by initiating preventive studies at branches. Vigilance: Vigilance administration is an important aspect of management function and is aimed to improve the efficiency and effectiveness of the organization. it is allowed to publish its financial statements only after proper audit. C. Taking into account the regulatory expectation. business profile and risk perceptions. The inspection policy. policies and procedures covering inspections and audits are periodically reviewed and improvements are carried out. It is mandatory for the bank to periodically review its performance as well as the books of accounts.Syndicate Bank ______________________________________________________________ 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. B. which is in existence since 2000. Investigations are carried out expeditiously and disciplinary proceedings are conducted in time. is revised incorporating subsequent changes in the system and also to suit the present day needs.

the Asst Public Information Officer .Syndicate Bank ______________________________________________________________ Assistant Public Information Officer. the same shall be communicated to the person who has made the request along with the reasons for such rejection. ______________________________________________________________ 21 . as expeditiously as possible and in any case within 30 days of receipt of the request. On receipt of a request for information. In case of rejection. the particulars of the Appellate Authority and the period within which an Appeal against such rejection may be preferred. If the information sought for concerns the life or liberty of a person. 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. the same shall be provided within forty-eight hours of the receipt of the request.

Global advances to reach Rs. Global credit-deposit ratio – 67. The advances details of the bank are : 1. Credit n policy formulation: the basic function of this department is to formulate policies and to regulate the advances. 62657 crore 2. B.73% 8. SME advances to reach Rs. 1958 crore 8.2% The advances plan of the bank is: 1. 5400 crore 9. the bank has launched several loan schemes like : ______________________________________________________________ 22 . 4894 crore 7. Retail credit to reach Rs. Credit flow to export credit – Rs. 47233 crore 3. 17552 crore 6. Domestic advances to reach Rs. Global advances – Rs. Credit flow to export credit to reach Rs. Retail credit – Rs.Syndicate Bank ______________________________________________________________ 3. 23971 crore 4. 2298 crore 7. Global credit-deposit ratio to reach 63. 56983 crore 3.3 CREDIT The important functions of this department include: A. Advances to housing loans – Rs. Agricultural credit – Rs. Priority sector credit – Rs. 13824 crore 6. Domestic advances – Rs. Small and Medium Enterprises (SME ): The SME forms one of the priority areas of the bank. Add one lakh SyndVidyarthi accounts. Agricultural credit to reach Rs. 8700 crore 5. 8050 crore 5. For its development. 18441 crore 4. 52839 crore 2. Priority sector credit to reach Rs.

Synd Swarozgar Credit Card (SSCC) 5. Synd Udyog 2.Syndicate Bank ______________________________________________________________ 1. Synd Vyapar 3. Synd Small Credit 7. Synd Shakthi ______________________________________________________________ 23 . Synd General Credit Card (SGCC) 6. Synd Laghu Udhyami Credit Card (SLUCC) 4.

Periodical discussions are held with the representatives of recognized registered trade union of workmen and officers. Foreign Exchange. requirements. Recruitment: Taking into consideration the existing manpower. both at the corporate and regional offices contributing to healthy industrial relations in the bank. in branches like Risk Management. Recovery Management. 40 General Programmes. Marketing and Quality Improvement. target group etc Industrial Relations: The employer-employee relations are cordial. taking into account the Corporate Goals. need for skilled staff to ______________________________________________________________ 24 . the emerging scenario. its age profile. The HR Policies of the Bank are geared to meet the corporate objectives of sound and profitable growth. 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. likely attrition. Training programmes are classified into two categories. target groups are listed in the Training Manual. Policies. Special programmes are designed based on the recommendations of the Departments at Head Office and Corporate Office. Information Technology.Syndicate Bank ______________________________________________________________ 3. business plans and strategies. Credit Management. Human Resource Management. Training activities of the Bank are governed by the policies and procedures laid down in the Training Manual. Internal Control Management. general programmes and special programmes. are identified and their course contents.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. need for additional manpower to support the growth and diversification of business.

The bank does not have a one-sided recruitment policy. bank’s website.. The recruitment policy of the bank lays more emphasis on “quality” and believes in giving equal chance to every one. ______________________________________________________________ 25 . Security. walk-ins. The short listed employees have to go through a series of interviews to be selected.Syndicate Bank ______________________________________________________________ work in the networked banking environment and also the priorities attached to agricultural sector under the National policy. Specialist Officers in the area of Agricultural Finance. The bank recruits through many sources like campus placements. Accounts and Financial Management. Information Technology.e. it believes in recruiting people not only from the upperstrata but also from the lower strata of the society. Law. the Bank has undertaken direct recruitment of General Banking Officers. etc. i. employment exchanges etc.

All 156 ATMs are interconnected to the Financial Transaction Switch and all the customers of CBS branches can use them. • The Bank has also implemented online Tax Accounting System at 324 designated branches to handle Direct Taxes. Presently all branches are computerized. Overall CBS network of the Bank increased to 1852 branches / offices spread across 1. In order to ensure near zero data loss. During the current fiscal CBS coverage was further consolidated. while the Disaster Recovery Site has been co-hosted at the vendors place. New products and services can be launched and MIS reports can be generated without losing time. the Bank has set up a Near Site at Mumbai.Syndicate Bank ______________________________________________________________ 3. • The Bank is first among Public Sector Banks to implement Core Banking Solutions (CBS) which is known by the brand name "Syndicate-banking". 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. collection facilities.052 centers and accounted for about 96% of the Bank's business. • Under the CBS project. • This makes remittance of funds. cheque clearing instant. to upgrade communication to develop electronic banking capabilities. ______________________________________________________________ 26 . The bank commenced implementing “Core Banking Solutions” (CBS) of Infosys during 2004. the bank has set up its own Data Centre.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.

Telebanking. review of business development and also for distant learning. Internet Banking and SMS Banking. • The CBS project has enabled the Bank to deliver banking products / services in middle delivery channels like networked ATMs.Syndicate Bank ______________________________________________________________ • The Bank has installed a High Tech Video Conferencing facility at around 40 locations across the Country. 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) ______________________________________________________________ 27 . This facility is used extensively for interaction of Top Management with the operation Heads for propagating strategies.

1.Syndicate Bank ______________________________________________________________ 3. Synddriver 12. Unitgain 10. Investigain 3. 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.6 INSURANCE The bank has also entered the insurance sector and has tie-ups with some of the major companies of the insurance world. Loan Protector 11. The bank provides the insurance cover association with Bajaj Allianz Life Insurance. Termcare 7. CP Swarankar. The following products are now marketed: 2. the bank’s CMD said Syndicate Bank was already reaping the fruits of this focus on financial inclusion. Swarna-vishranti 9. This focus is expected to boost the bank’s share of CASA (current account and saving accounts) base. Cashgain 4. Childgain 5. syndsuraksha ______________________________________________________________ 28 . Lifetimecare 8. Riskcare 6.

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. ______________________________________________________________ 29 . More of core should be the “mantra” of this year. 2. 9500 crore. Current deposits are projected to grow at 26. still it aims to increase its customer base.71% b. Add core deposits continuously: core deposits are cost effective deposits that help the bank to overcome the effect of reduced spread.Syndicate Bank ______________________________________________________________ 3. Acquire accounts aggressively: It is a bad patch currently.75% to reach Rs. Year of NPA resolution: The qualities of assets decide the quality of profits. Targets : The targets set by the bank are : a. 64000 crore. 102000 crore with a growth of 29. c. Core deposits are projected to grow at 41.17% to reach Rs. This would enable the bank to post higher profits. d. It is the responsibility of every employee to commit himself/herself fully to the task of increasing the recovery and reduce the NPAs. This theme is a conscious effort to replicate its outstanding performance under “1 million accounts “campaign launched in the previous year. Global deposits to reach Rs. 3. 97000 crore. 4.43% to reach Rs. Domestic deposits are projected to grow at 30.

h. Low cost deposits and core-term deposits campaign with total staff involvement. 5. Appointment of new pigmy agents 3. f. SyndVidyarthi and SyndSenior to increase customer base. Popularization of our products like SyndSamanya. Another important function of this department is Budgeting. optimum utilization of our delivery channels. i. 2. 21500 crore. Cross selling of our full range of technology driven products. preparing financial budgets for the coming fiscal. NRI deposits are projected to grow at 22% to reach Rs. Security deposits are projected to grow at 30. 7. Low cost deposits are projected to grow at 29. 8. Opening of new branches to increases business. 2400 crore. Bulk deposits at finer rates will be restricted below Rs. Leverage new accounts added during 2007-08 to increase low cost deposit. 6. The strategies to be followed to achieve the plan are: 1.52% to reach Rs. 3100 crore. j.Syndicate Bank ______________________________________________________________ e. Pigmy deposits are projected to increase from Rs. Focused marketing approach to broad base our clientele.. ______________________________________________________________ 30 .34% to reach Rs. 1530 crore to Rs. Focus on increased pigmy deposit level through reinvented pigmy plus 07. 31000 crore.e. 4. 30000 crore. i. g. Customer base to increase by 3 million to 22 million. Bringing younger generation to banks’ fold to turn available production and brand image.

and the filing of suits and enforcement of decrees. In other words. As a result of this. 2. the Supreme Court judgment does not curb the lenders' power to seize. 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 ______________________________________________________________ 31 . the lenders will have control over secured assets even before the case is heard at a DRT. Handling BIFR cases: : Banks and financial institutions (FIs) are opening up a new front in their offensive against defaulters. settlement policy. The main functions of this department are: 1. The appeals can be made at DRTs only after the assets have been seized by the lenders.8 The bank has a RECOVERY comprehensive recovery policy.Syndicate Bank ______________________________________________________________ 3. 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. 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. 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). corporate debt restructuring mechanism. which covers restructuring/rescheduling of loans. seizure and disposal of assets under the Securitization Act.

KVIC Margin Money Scheme (for units in rural areas) may be extended for rehabilitation packages also. 3. banks and FIs have begun queuing up before the board seeking withdrawal of the pending cases. 6. necessary support for business restructuring. which allows takeover and selling of assets of defaulters. diversification and technological upgradation as may be felt necessary by the lenders is also be encouraged by the bank.Syndicate Bank ______________________________________________________________ Assets law that allows lenders to seek abatement of cases pending before the BIFR. expansion. Support schemes like Credit Linked Capital Subsidy Scheme in case of units in other (than rural) areas. Such Adalats would ______________________________________________________________ 32 . modernisation. Handling DST Cases: The RBI has suggested setting up of debt settlements tribunals following the failure of DRTs. Rehabilitation Of Sick Units: As an incentive for proper restructuring package at the time of rehabilitation. This would enable lenders to resort to the new legislation. 5. This system involves appointment of a debt recovery officer by the bank who will issue the demand notice and pass the award 4. Synd Adalat: It is a process wherein the borrowers are given opportunity to settle their dues under compromise. the matter pending before BIFR would abate. Out of court settlements: The bank tries to settle any litigation with its customers before finally approaching the court. The new law provides that if 75 per cent of secured creditors (by value) agree.

Through this mechanism. disputes can be settled in a simpler.Syndicate Bank ______________________________________________________________ be organized at General Manager’s Office / Regional Office/cluster centers to enable the borrowers to participate in person and put forth his views. quicker and cost effective way. 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. 7. Lok Adalat: For recovery of smaller loans. Lok Adalats are conducted by State Level. District Level and Taluk Level Legal Services Authority in the respective states. ______________________________________________________________ 33 .

9 RISK MANAGEMENT Risk is inherent in every business and in daily life.837 crore as on March 2008 as compared to Rs. The total Foreign Exchange Turnover of the Bank stood at Rs. The bank has also appointed M/S Ernst & Young as consultants for operational risk management.94.5. Asset n liability management : The Bank has put in place a robust Asset Liability Management (ALM) system.94. Identifying. monitor and manage market risks. The Bank has procured Capital Assessment Model (CAM) from CRISIL to compute capital for credit risk as per Basel II requirement. The Bank is having an effective high level Asset Liability Committee (ALCO) comprising top executive so as to measure. Interest rate.Syndicate Bank ______________________________________________________________ 3. 2. Data collection and reporting of data is done on fortnightly basis to ALCO. The main functions of this department are: 1. ALM is implemented mainly to measure. 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. forex etc. Reduction in arbitrage swaps is the main reason for the decline in forex turnover.4. Foreign Exchange: The bank is required to maintain foreign Exchange reserves as per the RBI guidelines.983 crore for the previous financial year. monitoring. bank has implemented the Asset Liability Management (ALM) system as envisaged by the RBI. The bank has implemented Basel-II as on March 2008 and has complied with the requirements. market. which ultimately results in increased Net Interest Income of the bank. monitor and manage risks such as Liquidity. measuring and controlling are the major steps in Risk Management. The ALCO has been able to reconstruct the asset and liability ______________________________________________________________ 34 .

the Bank has entered into an MoU with CARE. The MoU was signed to utilize the services of CARE for supporting SMEs by making available affordable. Interest Rate Formulation: The bank has both fixed and floating interest rates and fixes these rates on the basis of market scenario. The Bank recently reduced its lending rates on housing loans. Fund Investment and Management: The company also helps its customers to invest their money in mutual funds. The rate cuts are in 0. On March 26. The bank is in the constant process of fine-tuning and improving the existing ALM structure system. 5.Syndicate Bank ______________________________________________________________ mix to reduce the risks at desired level. The coins in denominations of 4 gm. a credit rating tells a lender or investor the probability of the subject being able to pay back a loan. consumer credit and loans to women entrepreneurs. as such it is used for proper pricing. Gold selling: Syndicate Bank sells gold coins under the brand name “Syndsona” through its 104 select branches spread across eight States.. The bank imports the gold coins exclusively from Switzerland. 4. 8 gm and 10 gm in tamper proof card with 999.25-1. ______________________________________________________________ 35 . NSC certificates etc. one of the leading credit rating agencies in the country. risk involved etc. Managing Overall Credit Rating Of The Bank: Typically. 3. transparent. The bank had tied up with the existing clients and corporates for the sale of gold coins.5% range. comprehensive and reliable rating services to enhance credit acceptance. 6.9 purity certificate is sold through its designated branches.

Syndicate Bank Global Credit Cards C.Syndicate Bank ______________________________________________________________ 3. Cash Management (SCMS) deposit schemes D. BANCASSURANCE: 1. the Bank has launched innovative new products and services to its existing portfolio. Life Insurance Products 2. Deposit schemes 1. Social Security Deposit 7. Fixed Deposit 5. Special Premium Savings Accounts (CBS branches only) 4.10 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. Vikas Cash 6. These products are: B. Savings Deposit Account 3. Senior Citizen’s Security 8. Non Life Insurance Products 3. During the year 2007-08. Syndicate Suvidha ______________________________________________________________ 36 . PARA BANKING ACTIVITIES : 1. Syndicate Bank Global Debit Card 2. The bank has launched various products since its inception to cater to its customers needs. Synd 400 Plus and Synd 500 Plus 2.

SYND BANK SERVICES (BPO) F. SyndKisan 6. SyndRent 2.Syndicate Bank ______________________________________________________________ 9. Synd Laghu Udyami 8. SyndSmallCredit Synd Suvidha 11. Synd Udyog 12. Synd Mahila 9. SyndSenior 4. SyndSaral 3. Suvidha Deposit 12. Synd Mortgage Synd Pravasi 10. Pigmy Deposit 14. SyndVahan 7. LOAN PRODUCTS : 1. SyndNivas 5. SyndTaxShield Deposit Scheme 13. Cumulative Deposit 10. Super Premium Savings Bank Account 15. SyndFlexi Current Account E. Synd Vyapar 13. SyndShakti ______________________________________________________________ 37 . Synd Corporate 11. Synd Samanya Savings Bank Account (No Frills Account) 16.

Electronic Funds Transfer (EFT) System 10. Syndicate Kisan Credit Card(SKCC) 14. Purchase of Land For Agricultural Purpose 9. Farm Mechanization 4. Syndicate Farm House Scheme 13. On-Line Collection of Direct Taxes 6. Syndicate Gift ______________________________________________________________ 38 . Synd Bill 5. On-line Railway Ticket Booking 7. Rural Employment Generation Program 10. Development of Irrigation Infrastructure 3.Syndicate Bank ______________________________________________________________ G. Tenant Farm Loan H. Tele Internet Banking 2. Western Union Money Transfer 8. AGRICULTURAL LOAN PRODUCTS 1. Animal Husbandry Scheme 2. Jewel Loans for Agriculture 7. Solar Water Heater 11. SyndJaiKisan 6. Syndicate 2/3/4 Wheelers Scheme 12. Land Development Schemes 8. Multi City Accounts 4. ‘Any Branch Banking’ 3. Hi-tech Agriculture 5. SyndInstant .(RTGS System for instant transfer of funds 9. OTHER SERVICES : 1.

SyndInstant 24. Stop Payment Facility 13. Syndicate Gift Cheques ______________________________________________________________ 39 . Safe Deposit Lockers 15. Dormant Accounts 14. On-Line Collection of Direct Taxes 21. ‘Any Branch Banking’ 18. Multi City Accounts 19. Electronic Funds Transfer (EFT) System 25. Insurance Cover for Deposits 12. Internet Banking 17. Western Union Money Transfer 23. Synd Bill Pay 20. Tele Banking 16.Syndicate Bank ______________________________________________________________ 11. On-line Railway Ticket Booking 22.

Syndicate Bank ______________________________________________________________ CHAPTER: 4 SWOT ANALYSIS 4.1 Swot Analysis ______________________________________________________________ 40 .

Syndicate Bank ______________________________________________________________ 4. 2. So far. ______________________________________________________________ 41 . It has just started implementing its core banking solutions across many of its branches. Increasing NPA. The bank is well aware of its social responsibility and has been actively involved in the development of the society since its inception. 4. Many public sector banks have made much progress in this area. The bank is the first public sector bank to provide BPO services and is also ISO certified. The bank is a pioneer in introducing several initiatives such as agricultural financing and door-to-door banking. 2. WEAKNESSES: 1. which are now recognized as benchmarks by the industry. 3. It also offers a wide range of products to serve various needs of its customers. Poor qualification of many employees. the bank has won 25 awards for its excellence in providing banking services.1 STRENGTHS: SWOT ANALYSIS 1. 3.

THREATS: 1. ______________________________________________________________ 42 . 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. 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. Increasing competition posed by global and private sector banks. Expansion prospects in retail. 3. SME and agricultural sector. 4.Syndicate Bank ______________________________________________________________ OPPORTUNITIES: 1. The excessive time taken by the government to give compensation because of the recent loan waiver announced in the March 2008 Finance Budget. The Bank should also expand its presence in international markets. Better performance by private sector banks as well as some of its public sector counterparts. 2.

Syndicate Bank ______________________________________________________________ CHAPTER: 5 FINDINGS Findings Recommendations & Suggestions ______________________________________________________________ 43 .

TCS. 2. Syndicate Bank is India’s seventh largest public sector bank (in terms of total deposit). At select branches. 3.Syndicate Bank ______________________________________________________________ 5. The Bank is listed on the National Stock Exchange. 10. 7. 9. The bank has tie-ups with companies like Bajaj Allianz. ______________________________________________________________ 44 . 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. In BSE. Syndicate Bank has become the first public sector bank to enter the BPO segment. the Bank is listed in Group (B). 8. As many as 58 per cent of the bank's branches are in rural areas. and RUDSETI etc. 5. Emami Bio-Tech Ltd. Bombay Stock Exchange and Bangalore Stock Exchange. Western Union. While non CBS branches work for 4 hours on weekdays and 2 hours on Saturday. At CBS branches the working hours are 5½ on and 4 on weekdays and Saturday respectively. 4. The average age of the employees is 40+. Sree Kshetra Dharmasthala Rural Development Project. It is the 9th most customer friendly bank in India according to Outlook Money (edition Sep 2007) and secures 11th position when it comes to spending on IT according to DQINDIA (edition Jan 2008).1 FINDINGS 1. Syndicate Bank has also been awarded an ISO 9001:2000 certificate. It is one of the first public sector banks to go in for CBS as well. 11. 6. 7 day banking is also practiced.

The bank should expand its presence in international markets. laws or regulations. 4. networking its branch locations. 6. 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.Syndicate Bank ______________________________________________________________ 12. decrease in agricultural production. The bank has a lot of scope to enhance its retail banking. Having such a strong technological base. 3. changes in Government policies. 5. The keys to its retail strategy can be developing new products and services. 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. 5. sofa etc.g.) and water coolers too to make the customers feel comfortable upon their arrival in the bank. business expansion. increased competition. manage its customer relationships and allow it to offer a large number of value added products and to sell its products more effectively. developing its distribution channels including ATMs and internet banking. a recession in the economy .. 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. Non-performing assets are affected by number of factors e. Since ______________________________________________________________ 45 . adverse fluctuations in interest and exchange rates. 2. decline in commodity and food grain prices.2 RECOMMENDATIONS 1. the bank must use these capabilities to differentiate its products and services from those of its competitors. The layout of the Bank is spacious and has proper seating arrangement (like chairs.

it should take measures to mitigate the effect from these factors. Moreover. The Bank should market its products more aggressively to attract more customers and combat competition posed by the private sector players. the bank needs to recruit young blood too.Syndicate Bank ______________________________________________________________ the bank has huge NPA. 8. 7. ______________________________________________________________ 46 . The bank needs to recruit more people to fill up the manpower requirements arising because of its expansion process.

P.P MEMORIA – HUMAN RESOURCE MANAGEMENT 3.ROBBINS – ORGANIZATIONAL BEHAVIOUR 2.COM ______________________________________________________________ 47 .WWW.WWW.GOOGLE.COM 2.IN 3.Syndicate Bank ______________________________________________________________ 6.ECONOMICTIMES. C.1 BIBLIOGRAPHY For the completion of this project following books and websites have been referred and help from other sources has been taken. PHILIP KOTLER – MARKETING MANAGEMENT WEBSITES: 1.SYNDICATEBANK. Those are mentioned below : BOOKS: 1.STEPPHIN.WWW.

Syndicate Bank ______________________________________________________________ ______________________________________________________________ 48 .

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