Syndicate Bank ______________________________________________________________
CHAP 1 INTRODUCTION
1.1 Industry Profile 1.2 Company Profile 1.3 Product Profile
Syndicate Bank ______________________________________________________________
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.
Syndicate Bank ______________________________________________________________
“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
Hyderabad.125 branches in India with overseas presence in London and boasts of a workforce of over 25000 employees. The bank has made steady progress over the years and has had a consistent performance throughout. The bank offers wide gamut of services including deposits.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. 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 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. which can be seen from the following awards won by the Bank during this year.
. 2. The IT initiatives of the Bank have been amply recognized and rewarded both nationally and globally. foreign trade services. which are now recognized as benchmark by the industry. Best use of IT for customer service in Semi-urban and Rural areas by IDRBT. The bank is committed to providing high quality customer service and timely redressal of customer grievance. corporate and retail loans. In addition. 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 a pioneer in introducing several initiatives such as agricultural financing and door-to-door banking. insurance. Best Core Banking Project among Large Banks in Asia Pacific Region – The Asian Banker IT Implementation Awards 3. it has been managing exchange companies in the Middle East to channelize remittance from expatriates to India. cash management. cards. 1.
Syndicate Bank ______________________________________________________________
1.2 Mission 1.3 Goals 1.2.1 Vision 1.4 Objectives
• • • •
Consolidating position as a premier public sector bank with increased global outreach. competitive bank.Syndicate Bank ______________________________________________________________
1. vibrant. Serving its constituents and shareholders’ as a faithful friendly financial partner.
. Embracing state-of-art technology harnessing human potential and effectively participating in the process of nation building. Emerging as a strong.2. responsive.
2.Syndicate Bank ______________________________________________________________
1. • • Acquire accounts aggressively Year of NPA resolution
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.
4. 250 thousand crores by March 2010. 90000 crore by March 2010 to augment the income portfolio of the bank. 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. 6.3
The goals articulated for each of the functional areas of the bank is: 1. 170000 crore by March 2010 with emphasis on low cost resources by planned strategic initiatives including branch expansion. 10200 crore under agriculture.2. 3. Resources: To achieve global deposits of Rs. 23800 crore. 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. 2.
. aggressive marketing and active involvement of each and every employee.Syndicate Bank ______________________________________________________________
1. Rs. and provide financial assistance to all eligible candidates. Priority sector credit: To have accelerated and qualitative growth in priority sector lending to reach a level of Rs. Advances: To build qualitative asset base of around Rs. Rs. 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. 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. Business: To achieve global business of Rs.
. Risk management: To continuously upgrade the risk management systems and processes. Foreign exchange and treasury: To profitably manage the forex and investment assets of the bank to achieve an exportimport turnover of Rs. Profitability: To make every branch a profits centre and ensure best possible returns to the shareholders. control and governance processes. to provide the customer the ideal banking ambience. to ensure that our products and services adapt to the changing needs and expectations of the customers. Human resources and organizational structure: To mould and strengthen the organizational structure to meet the future business requirements and challenges. imbibe risk management in business activities and implement Basel II requirements for the benefit of all stakeholders. 12750 crore respectively. Customer relationship management : To fine-tune its marketing strategies to meet the ever growing market odds. To achieve treasury income of Rs. 12.Syndicate Bank ______________________________________________________________ 7. 35000 crore. Inspection: To migrate progressively from the present transaction oriented system to a risk based audit exercise enhancing the effectiveness of risk management. to reorient its publicity so as to provide increased visibility to its brand. 10. To redefine and to redevelop peoples’ management techniques so as to unleash human potential. 8. 11. 2345 crore with an investment of Rs. drive growth and nurture leadership of high quality corporate governance. 15000 crore and Rs.
1. To study the departments of the organization in detail. To gather study the organizational hierarchy of the company.2.
. 6. To have an overview of the organization. To gather sufficient information about the comoany so as to do its swot analysis. 3. To give our own suggestions for the betterment of the company. 5.Syndicate Bank ______________________________________________________________
1. To know about all the products and services being offered by the company 4.
UNITGAIN i. Syndicate Bank Global Debit Card 2. Syndicate Bank Global Credit Cards B. LOAN PROTECTOR j. BANKING ACTIVITIES : This activity includes the following : 1. SYNDDRIVER 3. INVESTGAIN b.3
A. Non Life Insurance Some of its life-insurance products in association with Bajaj Allianz are: a. CHILDGAIN d.Syndicate Bank ______________________________________________________________
1. TERMCARE f. BANCASSURANCE: The bank provides insurance services in association with Bajaj Allianz. LIFETIMECARE g. Savings Deposit Account: 3. 1. Special Premium Savings Accounts ______________________________________________________________ 12
. SWARNA-VISHRANTI h. DEPOSIT SCHEMES : 1. CASHGAIN c. Synd 400 Plus and Synd 500 Plus 2. RISKCARE e. Cash Management (SCMS) C. Life Insurance Products 2.
SYND BANK SERVICES (BPO): It is a wholly owned subsidiary of Syndicate Bank. Super Premium Savings Bank Account 12. Cumulative SyndTaxShield Deposit Scheme 10. SyndSenior: d. SyndMahila: l.
E. Social Security Deposit: 7. SyndNivasPlus: g. SyndPigmy: h. This is a first BPO outfit of a Nationalized Bank. SyndMortgage:
. Synd Samanya Savings Bank Account (No Frills Account) : 13. SyndFlexi Current Account D. SyndVidyarthi: e. SyndRent b. Pigmy Deposit 11. SyndSaral: c. LOAN PRODUCTS : a. Fixed Deposit Scheme: 5. This BPO Company is proposed to undertake the following activities facilitating customers to file their income tax returns. SyndLaghuUdyami: k. Vikas Cash Certificate: 6. SyndVahan: j.Syndicate Bank ______________________________________________________________ 4. SyndNivas: f. undertaking Back Office functions relating to Bank's Debit / Credit Card / Bancassurance Business etc. SyndKisan: i. Syndicate Suvidha Deposit 9. Senior Citizen’s Security Deposit 8.
OTHER SERVICES : 1. Tenant Farm Loan
G. Farm Mechanization Schemes 4. SyndJaiKisan 6.Syndicate Bank ______________________________________________________________ SyndPravasi: m. Rural Employment Generation Program 10. Syndicate 2/3/4 Wheelers Scheme 12. Land Development Schemes 8. SyndJaiKisan q. Hi-tech Agriculture 5. Jewel Loans for Agriculture 7. SyndVyapar: p. AGRICULTURAL LOAN PRODUCTS : 1. Syndicate Kisan Credit Card(SKCC) 14. SyndShakti F. Solar Water Heater Systems 11. Purchase of Land for Agricultural Purpose 9. Syndicate Farm House Scheme 13. Animal Husbandry Scheme 2. Development of Irrigation Infrastructure 3. SyndUdyog: o. Tele Banking ______________________________________________________________ 14
. SyndSmallCredit: SyndSuvidha: n.
Western Union Money Transfer 8. Electronic Funds Transfer (EFT) System 10. Insurance Cover for Deposits 12.(RTGS System for instant transfer of funds) 9. Syndicate Gift Cheques 11.Syndicate Bank ______________________________________________________________ 2. Synd Bill Pay 5. On-line Railway Ticket Booking 7. Dormant Accounts 14. ‘Any Branch Banking’ 4. On-Line Collection of Direct Taxes 6. Safe Deposit Lockers
. Stop Payment Facility 13. Internet Banking 3. SyndInstant .
Syndicate Bank ______________________________________________________________
Inspection Department 7. Retail Banking Department 11. Chief Compliance Officer 4. Premises & Maintenance Dept 3. Personnel Department 6. Corporate Credit Division – II (CCD-II) 10. General Administration Dept: Board Secretariat. Recoveries Dept 13.Syndicate Bank ______________________________________________________________
BOARD OF DIRECTORS
CHAIRMAN & MANAGING DIRECTOR
General Managers Portfolios 1. 15. Corporate Credit Division – I (CCD-I) 9. Central Accounts & Legal Dept 5. Priority Sector Credit Dept 2. Planning & Development Dept 12. Dept. Risk Management & Monitoring Dept. Treasury & International Banking Division
Regional Offices Branches
. of Information Technology 14. Vigilance Department 8.
Accounts Audit and inspection Credit Human resources Information technology Insurance Planning and development Recovery Risk management
3.3 3.6 3.Syndicate Bank ______________________________________________________________
3.4 3.2 3.5 3.7 3.1
.10 Retail banking
Inter branch reconciliation. 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. Handle tax related matters: Apart from this. 5.Syndicate Bank ______________________________________________________________ The functions of this department are: 1. except wherever otherwise stated. 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. Inter bank transactions between CBS branches are reconciled through the system on a real time basis so as to detect inconsistencies between them. bills etc.
3. all the tax related matters are also handled by this department. Through this. . Maintain government deposits: This department also helps the bank to maintain the government deposits like bonds. this department also handles issues related to income tax. of the countries concerned. but it also has several other functions.
4. Inter Branch Reconciliation: This department does not only involve maintaining books of accounts. Handling Cash Management Services: Another important function of this department is to handle CMS (Cash Management Services) operations. 3. One of the main functions of this department is. CMS is a volume based business that has varying peaks and lows. 2.2
AUDIT AND INSPECTION
. Thus. corporate tax etc.
On receipt of a request for information. Investigations are carried out expeditiously and disciplinary proceedings are conducted in time. as expeditiously as possible and in any case within 30 days of receipt of the request. Audit and Inspection: Conducting audit and inspection is one of the most important functions of the bank. it is allowed to publish its financial statements only after proper audit. 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. Providing Information Under The Right To Information Act. is revised incorporating subsequent changes in the system and also to suit the present day needs.Syndicate Bank ______________________________________________________________
The important functions of this department are: A. As per the RBI. Stress has been laid on preventive vigilance by initiating preventive studies at branches. C. business profile and risk perceptions. The inspection policy. B. the Asst Public Information Officer . Taking into account the regulatory expectation. 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 Assistant Public Information Officer. It is mandatory for the bank to periodically review its performance as well as the books of accounts. Vigilance: Vigilance administration is an important aspect of management function and is aimed to improve the efficiency and effectiveness of the organization. which is in existence since 2000. in consultation with Chief / Public Information Officer shall either provide ______________________________________________________________ 20 systems and
. policies and procedures covering inspections and audits are periodically reviewed and improvements are carried out.
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.Syndicate Bank ______________________________________________________________ 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 particulars of the Appellate Authority and the period within which an Appeal against such rejection may be preferred.
The important functions of this department include: ______________________________________________________________ 21
Global advances to reach Rs. Agricultural credit to reach Rs. Global credit-deposit ratio – 67. Synd Swarozgar Credit Card (SSCC) 5. For its development. SME advances to reach Rs. Domestic advances – Rs. 56983 crore 3. Synd Laghu Udhyami Credit Card (SLUCC) 4. Retail credit – Rs. Global advances – Rs.Syndicate Bank ______________________________________________________________
A. Priority sector credit to reach Rs. Credit n policy formulation: the basic function of this department is to formulate policies and to regulate the advances. Synd Vyapar 3. 8050 crore 5. 52839 crore 2. Add one lakh SyndVidyarthi accounts. 17552 crore 6. The advances details of the bank are : 1.2% The advances plan of the bank is: 1. 23971 crore 4. Priority sector credit – Rs. Advances to housing loans – Rs. 18441 crore 4. 2298 crore 7. Synd Udyog 2. 1958 crore 8. Credit flow to export credit to reach Rs. Agricultural credit – Rs.73% 8. Small and Medium Enterprises (SME ): The SME forms one of the priority areas of the bank. 62657 crore 2. Synd General Credit Card (SGCC) ______________________________________________________________ 22
. Retail credit to reach Rs. 4894 crore 7. 5400 crore 9. 13824 crore 6. Domestic advances to reach Rs. 47233 crore 3. B. the bank has launched several loan schemes like : 1. 8700 crore 5. Credit flow to export credit – Rs. Global credit-deposit ratio to reach 63.
Synd Small Credit 7. Synd Shakthi
“Be nice to people on your way up because you meet them on your way down” ______________________________________________________________ 23
.Syndicate Bank ______________________________________________________________ 6.
its age profile.Syndicate Bank ______________________________________________________________
Training: A great deal of emphasis is given on training of employees in each cadre including women and sc/st employees. 40 General Programmes. Policies. Internal Control Management. Accounts and Financial Management. the Bank has undertaken direct recruitment of General Banking Officers. Special programmes are designed based on the recommendations of the Departments at Head Office and Corporate Office. general programmes and special programmes. both at the corporate and regional offices contributing to healthy industrial relations in the bank. The bank does not have a one-sided ______________________________________________________________ 24
. Marketing and Quality Improvement. target group etc Industrial Relations: The employer-employee relations are cordial. etc. Training programmes are classified into two categories. Human Resource Management. target groups are listed in the Training Manual. Security. Training activities of the Bank are governed by the policies and procedures laid down in the Training Manual. in branches like Risk Management. need for additional manpower to support the growth and diversification of business. the emerging scenario. Recovery Management. Specialist Officers in the area of Agricultural Finance.
Periodical discussions are held with the representatives of recognized registered trade union of workmen and officers. 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. The HR Policies of the Bank are geared to meet the corporate objectives of sound and profitable growth. Credit Management. Foreign Exchange. are identified and their course contents. Law. taking into account the Corporate Goals. need for skilled staff to work in the networked banking environment and also the priorities attached to agricultural sector under the National policy. Information Technology. business plans and strategies. Recruitment: Taking into consideration the existing manpower. requirements. Information Technology. likely attrition.
i. The bank recruits through many sources like campus placements. it believes in recruiting people not only from the upperstrata but also from the lower strata of the society.Syndicate Bank ______________________________________________________________ recruitment policy. The recruitment policy of the bank lays more emphasis on “quality” and believes in giving equal chance to every one. The short listed employees have to go through a series of interviews to be selected..5
3. walk-ins.e. bank’s website. employment exchanges etc.
the bank has set up its own Data Centre. Overall CBS network of the Bank increased to 1852 branches / offices spread across 1. The bank has joined the Real Time Gross Settlement System (RTGS) and 397 branches of the bank are RTGS enabled. • This makes remittance of funds. • Under the CBS project. The Bank has installed a High Tech Video Conferencing facility at around 40 locations across the Country. Presently all branches are computerized. while the Disaster Recovery Site has been co-hosted at the vendors place. All 156 ATMs are interconnected to the Financial Transaction Switch and all the customers of CBS branches can use them. The bank commenced implementing “Core Banking Solutions” (CBS) of Infosys during 2004. • • The Bank has also implemented online Tax Accounting System at 324 designated branches to handle Direct Taxes. cheque clearing instant. Syndicate Bank has chose i-flex’s FLEXCUBE® and IBM’s infrastructure technologies and implementation services to upgrade its system. This facility is used extensively for interaction of Top Management with the operation ______________________________________________________________ 26
. to upgrade communication to develop electronic banking capabilities.Syndicate Bank ______________________________________________________________ “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.052 centers and accounted for about 96% of the Bank's business. In order to ensure near zero data loss. During the current fiscal CBS coverage was further consolidated. • The Bank is first among Public Sector Banks to implement Core Banking Solutions (CBS) which is known by the brand name "Syndicate-banking". collection facilities. 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 ______________________________________________________________ Heads for propagating strategies. Telebanking. • The CBS project has enabled the Bank to deliver banking products / services in middle delivery channels like networked ATMs. 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)
3. Internet Banking and SMS Banking. review of business development and also for distant learning.
Cashgain 4. Lifetimecare 8. Loan Protector 11. CP Swarankar. the bank’s CMD said Syndicate Bank was already reaping the fruits of this focus on financial inclusion. Investigain 3. Riskcare 6. syndsuraksha
. Synddriver 12. This focus is expected to boost the bank’s share of CASA (current account and saving accounts) base. 1. The bank provides the insurance cover association with Bajaj Allianz Life Insurance. Termcare 7. Childgain 5. Unitgain 10.Syndicate Bank ______________________________________________________________
The bank has also entered the insurance sector and has tie-ups with some of the major companies of the insurance world. Swarna-vishranti 9. The following products are now marketed: 2. 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.
The plan for the year 2008-09 is: 1. 21500 crore. Security deposits are projected to grow at 30.43% to reach Rs. Core deposits are projected to grow at 41. 97000 crore.75% to reach Rs.71% b.Syndicate Bank ______________________________________________________________
.17% to reach Rs. Add core deposits continuously: core deposits are cost effective deposits that help the bank to overcome the effect of reduced spread.52% to reach Rs. Domestic deposits are projected to grow at 30. d. e. Targets : The targets set by the bank are : a. 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. 9500 crore. Year of NPA resolution: The qualities of assets decide the quality of profits. still it aims to increase its customer base. 4. 64000 crore.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. 102000 crore with a growth of 29. 2. More of core should be the “mantra” of this year. Current deposits are projected to grow at 26. This would enable the bank to post higher profits. 3. c. It is the responsibility of every employee to commit himself/herself fully to the task of increasing the recovery and reduce the NPAs. Acquire accounts aggressively: It is a bad patch currently.
Leverage new accounts added during 2007-08 to increase low cost deposit.. Low cost deposits and core-term deposits campaign with total staff involvement. Bringing younger generation to banks’ fold to turn available production and brand image. Another important function of this department is Budgeting. i. g. 4.e. 6.
. 2400 crore. 7.Syndicate Bank ______________________________________________________________ f. Customer base to increase by 3 million to 22 million. NRI deposits are projected to grow at 22% to reach Rs. Low cost deposits are projected to grow at 29. 31000 crore. 5. h. The strategies to be followed to achieve the plan are: 1. i. optimum utilization of our delivery channels. Bulk deposits at finer rates will be restricted below Rs. Focus on increased pigmy deposit level through reinvented pigmy plus 07. Cross selling of our full range of technology driven products. preparing financial budgets for the coming fiscal. 30000 crore. Focused marketing approach to broad base our clientele. j. SyndVidyarthi and SyndSenior to increase customer base. 3100 crore. 2. Popularization of our products like SyndSamanya. 8. Opening of new branches to increases business. Appointment of new pigmy agents 3. 1530 crore to Rs. Pigmy deposits are projected to increase from Rs.34% to reach Rs.
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. seizure and disposal of assets under the Securitization Act. In other words. As a result of this. which covers
restructuring/rescheduling of loans. banks and FIs have begun queuing up before the
. 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 main functions of this department are: 1. and the filing of suits and enforcement of decrees. corporate debt restructuring mechanism. Backed by the Securitisation and Reconstruction of Financial Assets law that allows lenders to seek abatement of cases pending before the BIFR.
Handling BIFR cases: : Banks and financial institutions (FIs) are opening up a new front in their offensive against defaulters.
2. the lenders will have control over secured assets even before the case is heard at a DRT. 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. settlement policy. 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).8
The bank has a
comprehensive recovery policy.Syndicate Bank ______________________________________________________________
6. which allows takeover and selling of assets of defaulters. The new law provides that if 75 per cent of secured creditors (by value) agree. KVIC Margin Money Scheme (for units in rural areas) may be extended for rehabilitation packages also. Synd Adalat: It is a process wherein the borrowers are given opportunity to settle their dues under compromise.Syndicate Bank ______________________________________________________________ board seeking withdrawal of the pending cases. modernisation. 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. the matter pending before BIFR would abate. necessary support for business restructuring. Support schemes like Credit Linked Capital Subsidy Scheme in case of units in other (than rural) areas. expansion. Such Adalats would be organized at General Manager’s Office / Regional Office/cluster
. diversification and technological upgradation as may be felt necessary by the lenders is also be encouraged by the bank. Handling DST Cases: The RBI has suggested setting up of debt settlements tribunals following the failure of DRTs.
3. This would enable lenders to resort to the new legislation. Out of court settlements: The bank tries to settle any litigation with its customers before finally approaching the court.
7. disputes can be settled in a simpler.Syndicate Bank ______________________________________________________________ centers to enable the borrowers to participate in person and put forth his views. Through this mechanism. District Level and Taluk Level Legal Services Authority in the respective states. Lok Adalat: For recovery of smaller loans. quicker and cost effective way.
. Lok Adalats are conducted by State Level. It is voluntary process and works on the principle that both parties to the dispute are willing to sort out their dispute amicably. the RBI has suggested Lok Adalats.
837 crore as on March 2008 as compared to Rs. The ALCO has been able to reconstruct the asset and liability mix to reduce the risks at desired level. 2. The bank has implemented Basel-II as on March 2008 and has complied with the requirements. The Bank is having an effective high level Asset Liability Committee (ALCO) comprising top executive so as to measure. market.Syndicate Bank ______________________________________________________________
3. monitor and manage market risks. monitor and manage risks such as Liquidity. which ultimately results in increased Net Interest Income of the bank. monitoring.9
Risk is inherent in every business and in daily life.94.5. ALM is implemented mainly to measure. forex etc. 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.. as such it is used for proper ______________________________________________________________ 34
. The total Foreign Exchange Turnover of the Bank stood at Rs. Data collection and reporting of data is done on fortnightly basis to ALCO. Foreign Exchange: The bank is required to maintain foreign Exchange reserves as per the RBI guidelines. The main functions of this department are: 1.94. Asset n liability management : The Bank has put in place a robust Asset Liability Management (ALM) system.4. The Bank has procured Capital Assessment Model (CAM) from CRISIL to compute capital for credit risk as per Basel II requirement. bank has implemented the Asset Liability Management (ALM) system as envisaged by the RBI.983 crore for the previous financial year. Reduction in arbitrage swaps is the main reason for the decline in forex turnover. The bank has also appointed M/S Ernst & Young as consultants for operational risk management. Interest rate. Identifying.
4. The rate cuts are in 0. On March 26. a credit rating tells a lender or investor the probability of the subject being able to pay back a loan.Syndicate Bank ______________________________________________________________ pricing.5% range. comprehensive and reliable rating services to enhance credit acceptance. NSC certificates etc. The bank had tied up with the existing clients and corporates for the sale of gold coins. consumer credit and loans to women entrepreneurs. The bank imports the gold coins exclusively from Switzerland. the Bank has entered into an MoU with CARE.
3. The Bank recently reduced its lending rates on housing loans. The MoU was signed to utilize the services of CARE for supporting SMEs by making available affordable. transparent. Fund Investment and Management: The company also helps its customers to invest their money in mutual funds.9 purity certificate is sold through its designated branches. The bank is in the constant process of fine-tuning and improving the existing ALM structure system. risk involved etc. 8 gm and 10 gm in tamper proof card with 999. Interest Rate Formulation: The bank has both fixed and floating interest rates and fixes these rates on the basis of market scenario.25-1. Managing Overall Credit Rating Of The Bank: Typically.
6. The coins in denominations of 4 gm. one of the leading credit rating agencies in the country. Gold selling: Syndicate Bank sells gold coins under the brand name “Syndsona” through its 104 select branches spread across eight States.
These products are: B. PARA BANKING ACTIVITIES : 1. Social Security Deposit 7. Life Insurance Products 2. Cash Management (SCMS) deposit schemes D. Syndicate Bank Global Credit Cards C. Non Life Insurance Products 3. the Bank has launched innovative new products and services to its existing portfolio. Syndicate Bank Global Debit Card 2. Senior Citizen’s Security 8. The bank has launched various products since its inception to cater to its customers needs. Synd 400 Plus and Synd 500 Plus 2. Fixed Deposit 5. BANCASSURANCE: 1. Deposit schemes 1. During the year 2007-08.Syndicate Bank ______________________________________________________________
3. Savings Deposit Account 3.10
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. Syndicate Suvidha ______________________________________________________________ 36
. Special Premium Savings Accounts (CBS branches only) 4.
SYND BANK SERVICES (BPO)
F. Pigmy Deposit 14. SyndKisan 6. Synd Udyog 12. Synd Mortgage Synd Pravasi 10. SyndTaxShield Deposit Scheme 13. Synd Mahila 9. Synd Samanya Savings Bank Account (No Frills Account) 16. SyndSaral 3. LOAN PRODUCTS : 1. Suvidha Deposit 12. SyndRent 2. SyndSenior 4. Synd Vyapar 13. Animal Husbandry Scheme ______________________________________________________________ 37
G. SyndNivas 5. Synd Laghu Udyami 8. SyndFlexi Current Account
E. Super Premium Savings Bank Account 15. SyndSmallCredit Synd Suvidha 11. AGRICULTURAL LOAN PRODUCTS 1. Synd Corporate 11.Syndicate Bank ______________________________________________________________ 9. SyndVahan 7. Cumulative Deposit 10.
Development of Irrigation Infrastructure 3.(RTGS System for instant transfer of funds 9. Western Union Money Transfer 8. Electronic Funds Transfer (EFT) System 10. Jewel Loans for Agriculture 7. Insurance Cover for Deposits 12. SyndJaiKisan 6. Rural Employment Generation Program 10. On-line Railway Ticket Booking 7. SyndInstant . ‘Any Branch Banking’ 3. OTHER SERVICES : 1. Safe Deposit Lockers ______________________________________________________________ 38
. Syndicate Gift 11. Stop Payment Facility 13. Dormant Accounts 14. Hi-tech Agriculture 5. Synd Bill 5.Syndicate Bank ______________________________________________________________ 2. Solar Water Heater 11. Syndicate Farm House Scheme 13. Purchase of Land For Agricultural Purpose 9. Tenant Farm Loan
H. Syndicate 2/3/4 Wheelers Scheme 12. Multi City Accounts 4. On-Line Collection of Direct Taxes 6. Land Development Schemes 8. Syndicate Kisan Credit Card(SKCC) 14. Tele Internet Banking 2. Farm Mechanization 4.
Electronic Funds Transfer (EFT) System 25. On-line Railway Ticket Booking 22. Western Union Money Transfer 23.Syndicate Bank ______________________________________________________________ 15. ‘Any Branch Banking’ 18. On-Line Collection of Direct Taxes 21. SyndInstant 24. Tele Banking 16. Synd Bill Pay 20. Internet Banking 17. Syndicate Gift Cheques
. Multi City Accounts 19.
.Syndicate Bank ______________________________________________________________
4.1 Swot Analysis
2. 3. SME and agricultural sector. 4. The bank is well aware of its social responsibility and has been actively involved in the development of the society since its inception. 3. It has just started implementing its core banking solutions across many of its branches. which are now recognized as benchmarks by the industry. 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. 2. It also offers a wide range of products to serve various needs of its customers.Syndicate Bank ______________________________________________________________
STRENGTHS: 1. The bank is a pioneer in introducing several initiatives such as agricultural financing and door-to-door banking. the bank has won 25 awards for its excellence in providing banking services. Increasing NPA. So far. The bank is the first public sector bank to provide BPO services and is also ISO certified. The Bank should also expand its presence in international markets. Expansion prospects in retail. OPPORTUNITIES: 1. 2.
WEAKNESSES: 1. Many public sector banks have made much progress in this area. ______________________________________________________________ 41
. 4. Poor qualification of many employees. 3. 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.
3. Better performance by private sector banks as well as some of its public sector counterparts. 2. The excessive time taken by the government to give compensation because of the recent loan waiver announced in the March 2008 Finance Budget.Syndicate Bank ______________________________________________________________
. Increasing competition posed by global and private sector banks.
Syndicate Bank is India’s seventh largest public sector bank (in terms of total deposit). TCS.1 FINDINGS
1. Emami Bio-Tech Ltd. At CBS branches the working hours are 5½ on and 4 on weekdays and Saturday respectively.Syndicate Bank ______________________________________________________________
Findings Recommendations & Suggestionss 5. 9. 6. 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). While non CBS branches work for 4 hours on weekdays and 2 hours on Saturday. Bajaj Allianz. 4. Western Union. 5. 7. 3. Sree Kshetra Dharmasthala Rural Development Project. As many as 58 per cent of the bank's branches are in rural areas. It is one of the first public sector banks to go in for CBS as well. 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. The bank has tie-ups with companies like Reliance. In BSE. 10. 2. 8. Syndicate Bank has become the first public sector bank to enter the BPO segment. the Bank is listed in Group (B). Syndicate Bank has also been awarded an ISO 9001:2000 certificate. ______________________________________________________________ 43
. The average age of the employees is 40+. and RUDSETI etc. 7 day banking is also practiced. At select branches.
2. The bank should expand its presence in international markets. Bombay Stock Exchange and Bangalore Stock Exchange. networking its branch locations.g.Syndicate Bank ______________________________________________________________ 11.
5.) and water coolers too to make the customers feel comfortable upon their arrival in the bank. decrease in agricultural production. ______________________________________________________________ 44
. sofa etc. This connectivity will help it understand its customers better. 5. a recession in the economy . The keys to its retail strategy can be developing new products and services. Having such a strong technological base. decline in commodity and food grain prices. The Bank is listed on the National Stock Exchange. developing its distribution channels including ATMs and internet banking. manage its customer relationships and allow it to offer a large number of value added products and to sell its products more effectively. 12. 3. The bank has a lot of scope to enhance its retail banking. Non-performing assets are affected by number of factors e. increased competition.. the bank must use these capabilities to differentiate its products and services from those of its competitors. 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.2
1. The layout of the Bank is spacious and has proper seating arrangement (like chairs. The bank should also enhance its technological capabilities and continue to implement its Core Banking Solutions plan. 6. 4. 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.
.Syndicate Bank ______________________________________________________________ adverse fluctuations in interest and exchange rates. Since the bank has huge NPA. it should take measures to mitigate the effect from these factors. laws or regulations. the bank needs to recruit young blood too. The bank needs to recruit more people to fill up the manpower requirements arising because of its expansion process. changes in Government policies. The Bank should market its products more aggressively to attract more customers and combat competition posed by the private sector players. 8. 7. Moreover.
C.P MEMORIA – HUMAN RESOURCE MANAGEMENT 3.SYNDICATEBANK.1 BIBLIOGRAPHY
For the completion of this project following books and websites have been referred and help from other sources has been taken.P.IN 3. Those are mentioned below: BOOKS: 1.ECONOMICTIMES. WWW.Syndicate Bank ______________________________________________________________
. ROBBINS – ORGANIZATIONAL BEHAVIOUR 2.COM 2. PHILIP KOTLER – MARKETING MANAGEMENT
WEBSITES: 1. WWW. WWW.