syndicate bank

Syndicate Bank ______________________________________________________________

______________________________________________________________ Bangalore Institute Of Management Studies 1

CHAP 1

INTRODUCTION

1.1 Industry Profile

1.2 Company Profile

1.3 Product Profile

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1.1 INDUSTRY PROFILE

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

term financial needs of industry, trade and agriculture. At present, there are

286 scheduled commercial banks in the country, with a network of 67,742

branches. Scheduled commercial banks are the ones that are listed in the

second schedule to the RBI Act, and may further be classified as public sector

banks, private sector banks and foreign banks Scheduled commercial banks

have a presence throughout India, with nearly 69.72% of bank branches

located in rural or semi-urban areas of the country. A large number of these

branches belong to the public sector banks.

Public sector banks make up the largest category of banks in the Indian

banking system. There are 27 public sector banks in India. They include the

SBI and its associate banks and 19 nationalized banks. Nationalized banks

are governed by the Banking Companies (Acquisition and Transfer of

Undertakings) Act 1970 and 1980. The banks nationalized under the Banking

Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980 are

referred to as „corresponding new banks‟. Syndicate Bank is a corresponding

new bank, nationalized in 1969 under the Bank Acquisition Act.

Public sector banks operate in the remotest possible areas of the country and

give employment opportunity to one and all. Contrary to their private sector

counterparts, technological up gradation is still in infancy in public sector

banks. The most astonishing feature of the public sector banks is that many

employees are not computer literate and the personnel‟s average age is 40+.

These banks are also subject to limited government interference. But the last

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decade has seen many positive developments in the Indian banking sector.

These banks have established an outstanding track record of innovation,

growth and value creation. While bank lending has been a significant driver of

GDP growth and employment, periodic instances of the “failure” of some weak

banks have often threatened the stability of the system. But nonetheless, the

banking sector is the fastest growing and the most flourishing sector in the

Indian economy. The major players in this sector are private and public sector

banks.

Though the banking sector is going through a rough patch nowadays, still this

sector contributes the most to the world GDP. These banks should strive to

penetrate the untapped areas of the market to overshadow the downward

trend in this sector.

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1.2 COMPANY PROFILE

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

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

Syndicate Bank was established in 1925 in Udupi, and was originally known

as Canara Industrial and Banking Syndicate Limited. It was renamed as

Syndicate Bank Limited with effect from Jan 1, 1964 and was nationalized in

1969. It was started with a capital of Rs.8000/- by three visionaries - Sri

Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.

T M A Pai, a physician. Their objective was primarily to extend financial

assistance to the local weavers who were crippled by a crisis in the handloom

industry through mobilizing small savings from the community. The bank

collected as low as 2 annas daily at the doorsteps of the depositors through

its Agents under its Pigmy Deposit Scheme started in 1928. This scheme is

the Bank's brand equity today and the Bank collects around Rs. 2 crore per

day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of

progressive banking in India. Spanning over 80 years of pioneering expertise,

the Bank has created for itself a solid customer base comprising customers of

two or three generations. Being firmly rooted in rural India and understanding

the grass root realities, the Bank's perception had vision of future India. It has

been propagating innovations in Banking and also has been receptive to new

ideas, without however getting uprooted from its distinctive socio-economic

and cultural ethos. Its philosophy of growth by mutual sustenance of both the

Bank and the people has paid rich dividends. The Bank has been operating

as a catalyst of development across the country with particular reference to

the common man at the individual level and in rural/semi urban centers at the

area level.

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Syndicate Bank today is placed in the league of large and leading public

sector banks in India. The bank is a pioneer in introducing several initiatives

such as agricultural financing and door-to-door banking, which are now

recognized as benchmark by the industry. The bank offers wide gamut of

services including deposits, corporate and retail loans, cash management,

foreign trade services, cards, insurance. Syndicate bank has won accolades

for its service in rural communities and achieving exemplary customer service

is an ongoing priority for the bank. The bank has a large network of 2,125

branches in India with overseas presence in London and boasts of a

workforce of over 25000 employees.

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

channelize remittance from expatriates to India. The Bank has launched an

ambitious technology plan called Core Banking Solution (CBS) whereby 500

of our strategic branches with their ATMs are being networked nationwide

over a 4 year period. The bank has made steady progress over the years and

has had a consistent performance throughout.

The IT initiatives of the Bank have been amply recognized and rewarded both

nationally and globally, which can be seen from the following awards won by

the Bank during this year.

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

IDRBT, Hyderabad.

2. Best Core Banking Project among Large Banks in Asia Pacific Region

– The Asian Banker IT Implementation Awards

3. The Asian banker IT implementation AWARD 06 for best core banking

project for large banks

The bank is known for its customer friendly approach. The bank is committed

to providing high quality customer service and timely redressal of customer

grievance.

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1.3 PRODUCT PROFILE

A. BANKING ACTIVITIES : This activity includes the following :

1. Syndicate Bank Global Debit Card

2. Syndicate Bank Global Credit Cards

B. BANCASSURANCE: The bank provides insurance services in

association with Bajaj Allianz.

1. Life Insurance Products

2. Non Life Insurance

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

a. INVESTGAIN

b. CASHGAIN

c. CHILDGAIN

d. RISKCARE

e. TERMCARE

f. LIFETIMECARE

g. SWARNA-VISHRANTI

h. UNITGAIN

i. LOAN PROTECTOR

j. SYNDDRIVER

3. Cash Management (SCMS)

C. DEPOSIT SCHEMES :

1. Synd 400 Plus and Synd 500 Plus

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2. Savings Deposit Account:

3. Special Premium Savings Accounts

4. Fixed Deposit Scheme:

5. Vikas Cash Certificate:

6. Social Security Deposit:

7. Senior Citizen‟s Security Deposit

8. Syndicate Suvidha Deposit

9. Cumulative SyndTaxShield Deposit Scheme

10. Pigmy Deposit

11. Super Premium Savings Bank Account

12. Synd Samanya Savings Bank Account (No Frills Account) :

13. SyndFlexi Current Account

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

Syndicate Bank. This is a first BPO outfit of a Nationalized Bank. This

BPO Company is proposed to undertake the following activities

facilitating customers to file their income tax returns, undertaking Back

Office functions relating to Bank's Debit / Credit Card / Bancassurance

Business etc.

E. LOAN PRODUCTS :

a. SyndRent

b. SyndSaral:

c. SyndSenior:

d. SyndVidyarthi:

e. SyndNivas:

f. SyndNivasPlus:

g. SyndPigmy:

h. SyndKisan:

i. SyndVahan:

j. SyndLaghuUdyami:

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k. SyndMahila:

l. SyndMortgage:

m. SyndPravasi:

n. SyndSmallCredit:

o. SyndSuvidha:

p. SyndUdyog:

q. SyndVyapar:

r. SyndJaiKisan

s. SyndShakti

F. AGRICULTURAL LOAN PRODUCTS :

1. Animal Husbandry Scheme

2. Development of Irrigation Infrastructure

3. Farm Mechanization Schemes

4. Hi-tech Agriculture

5. SyndJaiKisan

6. Jewel Loans for Agriculture

7. Land Development Schemes

8. Purchase of Land for Agricultural Purpose

9. Rural Employment Generation Program

10. Solar Water Heater Systems

11. Syndicate 2/3/4 Wheelers Scheme

12. Syndicate Farm House Scheme

13. Syndicate Kisan Credit Card(SKCC)

14. Tenant Farm Loan

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G. OTHER SERVICES :

1. Tele Banking

2. Internet Banking

3. „Any Branch Banking‟

4. Synd Bill Pay

5. On-Line Collection of Direct Taxes

6. On-line Railway Ticket Booking

7. Western Union Money Transfer

8. SyndInstant - (RTGS System for instant transfer of funds)

9. Electronic Funds Transfer (EFT) System

10. Syndicate Gift Cheques

11. Insurance Cover for Deposits

12. Stop Payment Facility

13. Dormant Accounts

14. Safe Deposit Lockers

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CHAP 2

ORGANIZATION STRUCTURE

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ORGANISATION CHART

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

EXECUTIVE DIRECTOR

General Managers

Portfolios 1. Corporate Credit Division – I (CCD-I) 9. Priority Sector Credit Dept 2. Corporate Credit Division – II (CCD-II) 10. Premises & Maintenance Dept 3. Retail Banking Department 11. General Administration Dept Board Secretariat, Chief Compliance Officer 4. Planning & Development Dept 12. Central Accounts & Legal Dept 5. Recoveries Dept 13. Personnel Department 6. Dept. of Information Technology 14. Inspection Department 7. Risk Management & Monitoring Dept. 15 Vigilance Department 8. Treasury & International Banking Division

Regional Offices

Branches

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Chap 3

FUNCTIONAL AREAS

3.1 Accounts

3.2 Audit and inspection

3.3 Credit

3.4 Human resources

3.5 Information technology

3.6 Insurance

3.7 Planning and development

3.8 Recovery

3.9 Risk management

3.10 Retail banking

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3.1 ACCOUNTS

The functions of this department are:

1. Maintaining Books Of Accounts : The accompanying financial

statements are prepared following the “going concern” concept on

Historical Cost basis and conform to the statutory provisions and

prevailing practices, of the countries concerned, except wherever

otherwise stated.

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

maintaining books of accounts, but it also has several other functions.

One of the main functions of this department is, Inter branch

reconciliation. Through this, Inter bank transactions between CBS

branches are reconciled through the system on a real time basis so as

to detect inconsistencies between them.

3. Handling Cash Management Services: Another important function of

this department is to handle CMS ( Cash Management Services )

operations. . CMS is a volume based business that has varying peaks

and lows, which means to maximize its advantages banks have to

manage processes at peak loads not only on peak days and weeks but

at all times.

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

to maintain the government deposits like bonds, bills etc.

5. Handle tax related matters: Apart from this, all the tax related matters

are also handled by this department. Thus, this department also

handles issues related to income tax, corporate tax etc.

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3.2 AUDIT AND INSPECTION

The important functions of this department are:

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

most important functions of the bank. It is mandatory for the bank to

periodically review its performance as well as the books of accounts.

As per the RBI, it is allowed to publish its financial statements only after

proper audit. Taking into account the regulatory expectation, business

profile and risk perceptions, policies and procedures covering

inspections and audits are periodically reviewed and improvements are

carried out. The inspection policy, which is in existence since 2000, is

revised incorporating subsequent changes in the system and also to

suit the present day needs.

B. Vigilance: Vigilance administration is an important aspect of

management function and is aimed to improve the efficiency and

effectiveness of the organization. Investigations are carried out

expeditiously and disciplinary proceedings are conducted in time.

Stress has been laid on preventive vigilance by initiating preventive

studies at branches, conducting preventive vigilance training at SIBM

and all the other major training centers and constituting Preventive

Vigilance Committee at the branches with staff strength of 15 and

above with a view to ensure strict adherence of systems and

procedures.

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

(RIA): A person who desires to obtain any information under this Act

shall make a request in writing or through electronic means along with

such fees which will be prescribed by the respective Bank to the

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Assistant Public Information Officer. On receipt of a request for

information, the Asst Public Information Officer , as expeditiously as

possible and in any case within 30 days of receipt of the request, in

consultation with Chief / Public Information Officer shall either provide

the information or reject the request for any other reasons specified in

Section 8 & 9 of the Act. If the information sought for concerns the life

or liberty of a person, the same shall be provided within forty-eight

hours of the receipt of the request. In case of rejection, the same shall

be communicated to the person who has made the request along with

the reasons for such rejection, the particulars of the Appellate Authority

and the period within which an Appeal against such rejection may be

preferred.

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3.3 CREDIT

The important functions of this department include:

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

formulate policies and to regulate the advances. The advances details

of the bank are :

1. Global advances – Rs. 52839 crore

2. Domestic advances – Rs. 47233 crore

3. Priority sector credit – Rs. 18441 crore

4. Agricultural credit – Rs. 8050 crore

5. Retail credit – Rs. 13824 crore

6. Advances to housing loans – Rs. 4894 crore

7. Credit flow to export credit – Rs. 1958 crore

8. Global credit-deposit ratio – 67.2%

The advances plan of the bank is:

1. Global advances to reach Rs. 62657 crore

2. Domestic advances to reach Rs. 56983 crore

3. Priority sector credit to reach Rs. 23971 crore

4. Agricultural credit to reach Rs. 8700 crore

5. Retail credit to reach Rs. 17552 crore

6. Credit flow to export credit to reach Rs. 2298 crore

7. Global credit-deposit ratio to reach 63.73%

8. SME advances to reach Rs. 5400 crore

9. Add one lakh SyndVidyarthi accounts.

B. Small and Medium Enterprises (SME ): The SME forms one of the

priority areas of the bank. For its development, the bank has launched

several loan schemes like :

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1. Synd Udyog

2. Synd Vyapar

3. Synd Laghu Udhyami Credit Card (SLUCC)

4. Synd Swarozgar Credit Card (SSCC)

5. Synd General Credit Card (SGCC)

6. Synd Small Credit

7. Synd Shakthi

http://syndicatebank.in/scripts/syndudyog.aspx

http://syndicatebank.in/scripts/SyndVyapar.aspx

http://syndicatebank.in/scripts/SyndLaghuUdhyami.aspx

http://www.syndicatebank.in/scripts/syndswarojgarcard.aspx

http://www.syndicatebank.in/scripts/syndgencreditcard.aspx

http://syndicatebank.in/scripts/syndsmallcredit.aspx

http://www.syndicatebank.in/scripts/syndshakti.aspx

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3.4 HUMAN RESOURCES

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

down”

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

cadre including women and sc/st employees. SIBM (Syndicate Institute of

Bank Management) was established in November 1987 and is the apex

training institution of Syndicate Bank for honing skills in banking and

management for the bank's executives and senior personnel. Training

activities of the Bank are governed by the policies and procedures laid down

in the Training Manual. Training programmes are classified into two

categories, general programmes and special programmes. 40 General

Programmes, in branches like Risk Management, Credit Management,

Recovery Management, Internal Control Management, Human Resource

Management, Marketing and Quality Improvement, Foreign Exchange,

Information Technology, are identified and their course contents, target

groups are listed in the Training Manual. Special programmes are designed

based on the recommendations of the Departments at Head Office and

Corporate Office, taking into account the Corporate Goals, Policies,

requirements, business plans and strategies, target group etc

Industrial Relations: The employer-employee relations are cordial.

Periodical discussions are held with the representatives of recognized

registered trade union of workmen and officers, both at the corporate and

regional offices contributing to healthy industrial relations in the bank.

The HR Policies of the Bank are geared to meet the corporate objectives of

sound and profitable growth.

Recruitment: Taking into consideration the existing manpower, its age

profile, likely attrition, the emerging scenario, need for additional manpower to

support the growth and diversification of business, need for skilled staff to

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work in the networked banking environment and also the priorities attached to

agricultural sector under the National policy, the Bank has undertaken direct

recruitment of General Banking Officers, Specialist Officers in the area of

Agricultural Finance, Information Technology, Accounts and Financial

Management, Security, Law, etc. The bank does not have a one-sided

recruitment policy, i.e., it believes in recruiting people not only from the upper-

strata but also from the lower strata of the society. The recruitment policy of

the bank lays more emphasis on “quality” and believes in giving equal chance

to every one. The bank recruits through many sources like campus

placements, bank‟s website, walk-ins, employment exchanges etc. The short

listed employees have to go through a series of interviews to be selected.

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3.5 INFORMATION TECHNOLOGY

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

tomorrow”

The bank has created this dept to promote computer literacy among

employees, to upgrade communication to develop electronic banking

capabilities. Presently all branches are computerized. All 156 ATMs are

interconnected to the Financial Transaction Switch and all the customers of

CBS branches can use them. The bank has joined the Real Time Gross

Settlement System (RTGS) and 397 branches of the bank are RTGS enabled.

Syndicate Bank has chose i-flex‟s FLEXCUBE® and IBM‟s infrastructure

technologies and implementation services to upgrade its system.

The Bank is first among Public Sector Banks to implement Core

Banking Solutions (CBS) which is known by the brand name "Syndicat-

e-banking". The bank commenced implementing “Core Banking

Solutions” (CBS) of Infosys during 2004. During the current fiscal CBS

coverage was further consolidated. Overall CBS network of the Bank

increased to 1852 branches / offices spread across 1,052 centers and

accounted for about 96% of the Bank's business.

Under the CBS project, the bank has set up its own Data Centre, while

the Disaster Recovery Site has been co-hosted at the vendors place. In

order to ensure near zero data loss, the Bank has set up a Near Site at

Mumbai.

This makes remittance of funds, collection facilities, cheque clearing

instant. New products and services can be launched and MIS reports

can be generated without losing time.

The Bank has also implemented online Tax Accounting System at 324

designated branches to handle Direct Taxes.

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The Bank has installed a High Tech Video Conferencing facility at

around 40 locations across the Country. This facility is used

extensively for interaction of Top Management with the operation

Heads for propagating strategies, review of business development and

also for distant learning.

The CBS project has enabled the Bank to deliver banking products /

services in middle delivery channels like networked ATMs, Tele-

banking, Internet Banking and SMS Banking, so as to provide

Anywhere Anytime Anyhow (AAA) Banking services to customers

Branches are computerized with 3 types of software deployed at the

branches :

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

Total banking mechanization – 1% branches (branch network)

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

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3.6 INSURANCE

The bank has also entered the insurance sector and has tie-ups with some of

the major companies of the insurance world.

The bank provides the insurance cover association with Bajaj Allianz Life

Insurance. Allianz Bajaj Life Insurance Company has signed a memorandum

of understanding with Syndicate Bank for distributing its insurance products

through the bank's pan-India branch network.

CP Swarankar, the bank‟s CMD said Syndicate Bank was already reaping the

fruits of this focus on financial inclusion. This focus is expected to boost the

bank‟s share of CASA (current account and saving accounts) base.

1. The following products are now marketed:

2. Investigain

3. Cashgain

4. Childgain

5. Riskcare

6. Termcare

7. Lifetimecare

8. Swarna-vishranti

9. Unitgain

10. Loan Protector

11. Synddriver

12. syndsuraksha

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3.7 PLANNING AND DEVELOPMENT

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

strategize actions for continuation of journey against odds”

Planning is a strategic tool of the management to chart out the future course

of action. The plan for the year 2008-09 is:

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

it aims to increase its customer base. This theme is a conscious

effort to replicate its outstanding performance under “1 million

accounts “campaign launched in the previous year.

2. Add core deposits continuously: core deposits are cost

effective deposits that help the bank to overcome the effect of

reduced spread. More of core should be the “mantra” of this

year. This would enable the bank to post higher profits.

3. Year of NPA resolution: The qualities of assets decide the

quality of profits. It is the responsibility of every employee to

commit himself/herself fully to the task of increasing the

recovery and reduce the NPAs.

4. Targets : The targets set by the bank are :

a. Global deposits to reach Rs. 102000 crore with a growth

of 29.71%

b. Domestic deposits are projected to grow at 30.43% to

reach Rs. 97000 crore.

c. Core deposits are projected to grow at 41.17% to reach

Rs. 64000 crore.

d. Current deposits are projected to grow at 26.75% to


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


f. Low cost deposits are projected to grow at 29.34% to


g. Pigmy deposits are projected to increase from Rs. 1530

crore to Rs. 2400 crore.

h. NRI deposits are projected to grow at 22% to reach Rs.

3100 crore.

i. Bulk deposits at finer rates will be restricted below Rs.

30000 crore.

j. Customer base to increase by 3 million to 22 million.

The strategies to be followed to achieve the plan are:

1. Low cost deposits and core-term deposits campaign with total staff

involvement.

2. Focus on increased pigmy deposit level through reinvented pigmy

plus 07. Appointment of new pigmy agents

3. Leverage new accounts added during 2007-08 to increase low cost

deposit.

4. Bringing younger generation to banks‟ fold to turn available

production and brand image.

5. Cross selling of our full range of technology driven products,

optimum utilization of our delivery channels.

6. Focused marketing approach to broad base our clientele.

7. Opening of new branches to increases business.

8. Popularization of our products like SyndSamanya, SyndVidyarthi

and SyndSenior to increase customer base.

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

financial budgets for the coming fiscal.

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3.8 RECOVERY

The bank has a comprehensive recovery policy, which covers

restructuring/rescheduling of loans, settlement policy, corporate debt

restructuring mechanism, seizure and disposal of assets under the

Securitization Act, and the filing of suits and enforcement of decrees.

The main functions of this department are:

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

the Centre to reduce the non-performing assets (NPAs) of banks and

to provide fast disposal of such cases. The recent Supreme Court

judgment makes it mandatory for banks to withdraw all cases pending

before the debt recovery tribunal (DRT) prior to taking action under

Securitisation and Reconstruction of Financial Assets and Enforcement

of Security Interest (Sarfaesi) Act 2000. The appeals can be made at

DRTs only after the assets have been seized by the lenders. In other

words, the Supreme Court judgment does not curb the lenders' power

to seize. As a result of this, the lenders will have control over secured

assets even before the case is heard at a DRT. This will ensure safe

upkeep of the assets and prevent erosion in security value during the

litigation as it happens in the case of those companies that are referred

to the Board for Industrial and Financial Reconstruction (BIFR).

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

opening up a new front in their offensive against defaulters. Lenders

are now busy joining hands to drill a hole in Board for Industrial and

Financial Reconstruction (BIFR) umbrella that for long was being used

by defaulters as a shelter whenever creditors appeared to be on hot

pursuit. Backed by the Securitisation and Reconstruction of Financial

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Assets law that allows lenders to seek abatement of cases pending

before the BIFR, banks and FIs have begun queuing up before the

board seeking withdrawal of the pending cases. This would enable

lenders to resort to the new legislation, which allows takeover and

selling of assets of defaulters. The new law provides that if 75 per cent

of secured creditors (by value) agree, the matter pending before BIFR

would abate.

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

settlements tribunals following the failure of DRTs. This system

involves appointment of a debt recovery officer by the bank who will

issue the demand notice and pass the award

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

package at the time of rehabilitation, necessary support for business

restructuring, modernisation, expansion, diversification and

technological upgradation as may be felt necessary by the lenders is

also be encouraged by the bank. Support schemes like Credit Linked

Capital Subsidy Scheme in case of units in other (than rural) areas,

KVIC Margin Money Scheme (for units in rural areas) may be extended

for rehabilitation packages also.

5. Out of court settlements: The bank tries to settle any litigation with its

customers before finally approaching the court.

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

opportunity to settle their dues under compromise. Such Adalats would

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

centers to enable the borrowers to participate in person and put forth

his views.

7. Lok Adalat: For recovery of smaller loans, the RBI has suggested Lok

Adalats. It is voluntary process and works on the principle that both

parties to the dispute are willing to sort out their dispute amicably.

Through this mechanism, disputes can be settled in a simpler, quicker

and cost effective way. Lok Adalats are conducted by State Level,

District Level and Taluk Level Legal Services Authority in the

respective states.

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3.9 RISK MANAGEMENT

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

measuring and controlling are the major steps in Risk Management. The Bank

has been continuously upgrading and fine-tuning the Risk Management

Systems in tune with international best practices and directions issued by

Reserve Bank of India. The bank has implemented Basel-II as on March 2008

and has complied with the requirements. The Bank has procured Capital

Assessment Model (CAM) from CRISIL to compute capital for credit risk as

per Basel II requirement. The bank has also appointed M/S Ernst & Young as

consultants for operational risk management.

The main functions of this department are:

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

Exchange reserves as per the RBI guidelines. The total Foreign

Exchange Turnover of the Bank stood at Rs.4,94,837 crore as on

March 2008 as compared to Rs.5,94,983 crore for the previous

financial year. Reduction in arbitrage swaps is the main reason for the

decline in forex turnover.

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

Asset Liability Management (ALM) system. ALM is implemented mainly

to measure, monitor and manage market risks, which ultimately results

in increased Net Interest Income of the bank. The Bank is having an

effective high level Asset Liability Committee (ALCO) comprising top

executive so as to measure, monitor and manage risks such as

Liquidity, Interest rate, market, forex etc. bank has implemented the

Asset Liability Management (ALM) system as envisaged by the RBI.

Data collection and reporting of data is done on fortnightly basis to

ALCO. The ALCO has been able to reconstruct the asset and liability

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mix to reduce the risks at desired level., as such it is used for proper

pricing. The bank is in the constant process of fine-tuning and

improving the existing ALM structure system.

3. Gold selling: Syndicate Bank sells gold coins under the brand name

“Syndsona” through its 104 select branches spread across eight

States. The coins in denominations of 4 gm, 8 gm and 10 gm in tamper

proof card with 999.9 purity certificate is sold through its designated

branches. The bank imports the gold coins exclusively from

Switzerland. The bank had tied up with the existing clients and

corporates for the sale of gold coins.

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

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

5. Interest Rate Formulation: The bank has both fixed and floating

interest rates and fixes these rates on the basis of market scenario, risk

involved etc.

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

rating tells a lender or investor the probability of the subject being able

to pay back a loan. The Bank recently reduced its lending rates on

housing loans, consumer credit and loans to women entrepreneurs.

The rate cuts are in 0.25-1.5% range. On March 26, the Bank has

entered into an MoU with CARE, one of the leading credit rating

agencies in the country. The MoU was signed to utilize the services of

CARE for supporting SMEs by making available affordable,

transparent, comprehensive and reliable rating services to enhance

credit acceptance.

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3.10 RETAIL MARKETING

The Bank has been keeping a close watch on the market dynamics and

introduction of new products and services are tailored and customized to suit

the customers' requirements. During the year 2007-08, the Bank has

launched innovative new products and services to its existing portfolio. The

bank has launched various products since its inception to cater to its

customers needs. These products are:

B. PARA BANKING ACTIVITIES :

1. Syndicate Bank Global Debit Card

2. Syndicate Bank Global Credit Cards

C. BANCASSURANCE:

1. Life Insurance Products

2. Non Life Insurance Products

3. Cash Management (SCMS) deposit schemes

D. Deposit schemes

1. Synd 400 Plus and Synd 500 Plus

2. Savings Deposit Account

3. Special Premium Savings Accounts (CBS branches only)

4. Fixed Deposit

5. Vikas Cash

6. Social Security Deposit

7. Senior Citizen‟s Security

8. Syndicate Suvidha

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9. Cumulative Deposit

10. Synd Corporate

11. Suvidha Deposit

12. SyndTaxShield Deposit Scheme

13. Pigmy Deposit

14. Super Premium Savings Bank Account

15. Synd Samanya Savings Bank Account (No Frills Account)

16. SyndFlexi Current Account

E. SYND BANK SERVICES (BPO)

F. LOAN PRODUCTS :

1. SyndRent

2. SyndSaral

3. SyndSenior

4. SyndNivas

5. SyndKisan

6. SyndVahan

7. Synd Laghu Udyami

8. Synd Mahila

9. Synd Mortgage

10. Synd Pravasi

11. SyndSmallCredit

12. Synd Suvidha

13. Synd Udyog

14. Synd Vyapar

15. SyndShakti

G. AGRICULTURAL LOAN PRODUCTS

1. Animal Husbandry Scheme

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2. Development of Irrigation Infrastructure

3. Farm Mechanization

4. Hi-tech Agriculture

5. SyndJaiKisan

6. Jewel Loans for Agriculture

7. Land Development Schemes

8. Purchase of Land For Agricultural Purpose

9. Rural Employment Generation Program

10. Solar Water Heater

11. Syndicate 2/3/4 Wheelers Scheme

12. Syndicate Farm House Scheme

13. Syndicate Kisan Credit Card(SKCC)

14. Tenant Farm Loan

H. OTHER SERVICES :

1. Tele Internet Banking


3. Multi City Accounts

4. Synd Bill




8. SyndInstant - (RTGS System for instant transfer of funds


10. Syndicate Gift

11. Insurance Cover for Deposits

12. Stop Payment Facility

13. Dormant Accounts

14. Safe Deposit Lockers

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15. Tele Banking

16. Internet Banking


18. Multi City Accounts

19. Synd Bill Pay




23. SyndInstant


25. Syndicate Gift Cheques

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CHAP 4

SWOT ANALYSIS

4.1 Swot Analysis

4.2 Vision

4.3 Mission

4.4 Goals

4.5 Objectives

Syndicate Bank ______________________________________________________________


4.1 SWOT ANALYSIS

STRENGTHS:

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

agricultural financing and door-to-door banking, which are now

recognized as benchmarks by the industry.

2. So far, the bank has won 25 awards for its excellence in providing

banking services. It also offers a wide range of products to serve

various needs of its customers.

3. The bank is the first public sector bank to provide BPO services and is

also ISO certified.

4. The bank is well aware of its social responsibility and has been actively

involved in the development of the society since its inception.

WEAKNESSES:

1. Increasing NPA.

2. Poor qualification of many employees.

3. It has just started implementing its core banking solutions across many

of its branches. Many public sector banks have made much progress in

this area.

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OPPORTUNITIES:

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

this strength to cross sell and up sell its various products to them.

2. Expansion prospects in retail, SME and agricultural sector.

3. The Bank should enhance its technological capabilities to differentiate

products and services from those of its competitors and continue to

implement its Core Banking Solutions plan.

4. The Bank should also expand its presence in international markets.

THREATS:

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

2. The excessive time taken by the government to give compensation

because of the recent loan waiver announced in the March 2008

Finance Budget.

3. Better performance by private sector banks as well as some of its

public sector counterparts.

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4.2 VISION

Consolidating position as a premier public sector bank with increased

global outreach.

Emerging as a strong, vibrant, responsive, competitive bank.

Embracing state-of-art technology harnessing human potential and

effectively participating in the process of nation building.

Serving its constituents and shareholders‟ as a faithful friendly financial

partner.

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4.3 MISSION

The bank continuously envisages to:

Add core deposits continuously

Offer better customer service

Enhance tolerance level in dealing with customers and get better

understanding of their requirements

Design and deliver the products and services according to its

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

experience.

Acquire accounts aggressively

Year of NPA resolution

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4.4 GOALS

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

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

crores by March 2009.

2. Resources: To achieve global deposits of Rs. 162000 crore by

March 2009 with emphasis on low cost resources by planned

strategic initiatives including branch expansion, aggressive

marketing and active involvement of each and every employee.

3. Advances: To build qualitative asset base of around Rs. 80000

crore by March 2009 to augment the income portfolio of the

bank.

4. Priority sector credit: To have accelerated and qualitative

growth in priority sector lending to reach a level of Rs. 23800

crore, Rs. 10200 crore under agriculture, Rs. 3514 crore under

SME through various customer friendly credit products and to

take maximum advantage of “Financial Inclusion “ so as to

expand the clientele base of the bank, and provide financial

assistance to all eligible candidates.

5. Information Technology: To harness state-of-art technology

and network all branches so as to make available reliable MIS

for DSS and deploy best practices in Information Security to

manage the business effectively and profitably.

6. Management of assets : To make 2008-09 truly a “year of NPA

resolution” by striving for getting “A” rating under asset quality by

upgrading NPAs, bringing down gross NPA and net NPA level

both in absolute and percentage terms below march 2008 figure

and accomplish NPA recovery target as per commitment.

7. Foreign exchange and treasury: To profitably manage the

forex and investment assets of the bank to achieve an export-

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

respectively. To achieve treasury income of Rs. 2345 crore with

an investment of Rs. 35000 crore.

8. Profitability: To make every branch a profits centre and ensure

best possible returns to the shareholders.

9. Risk management: To continuously upgrade the risk

management systems and processes, imbibe risk management

in business activities and implement Basel II requirements for

the benefit of all stakeholders.

10. Human resources and organizational structure: To mould

and strengthen the organizational structure to meet the future

business requirements and challenges. To redefine and to

redevelop peoples‟ management techniques so as to unleash

human potential, drive growth and nurture leadership of high

quality corporate governance,

11. Customer relationship management : To fine-tune its

marketing strategies to meet the ever growing market odds, to

ensure that our products and services adapt to the changing

needs and expectations of the customers, to provide the

customer the ideal banking ambience, to reorient its publicity so

as to provide increased visibility to its brand.

12. Inspection: To migrate progressively from the present

transaction oriented system to a risk based audit exercise

enhancing the effectiveness of risk management, control and

governance processes.

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4.5 OBJECTIVES

1. To have an overview of the organization.

2. To study the departments of the organization in detail.

3. To know about all the products and services being offered by the

company

4. To gather study the organizational hierarchy of the company.

5. To gather sufficient information about the comoany so as to do its swot

analysis.

6. To give our own suggestions for the betterment of the company.

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CHAP 5 FINDINGS

Findings

Recommendations & Suggestions

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5.1 FINDINGS

1. Syndicate Bank is India‟s seventh largest public sector bank (in terms

of total deposit).

2. It is the 9th most customer friendly bank in India according to Outlook

Money (edition Sep 2007) and secures 11th position when it comes to

spending on IT according to DQINDIA (edition Jan 2008).

3. As many as 58 per cent of the bank's branches are in rural areas.

4. The average age of the employees is 40+.

5. In BSE, the Bank is listed in Group (B).

6. At CBS branches the working hours are 5½ on and 4 on weekdays

and Saturday respectively. While non CBS branches work for 4 hours

on weekdays and 2 hours on Saturday. At select branches, 7 day

banking is also practiced.

7. Syndicate Bank has become the first public sector bank to enter the

BPO segment. It is one of the first public sector banks to go in for CBS

as well.

8. Syndicate Bank has also been awarded an ISO 9001:2000 certificate.

9. The Bank is a founder member of the “Cash Tree” consortium of 12

Banks with total number of ATMs under the network to over 4500.

10. The bank has tie-ups with companies like Bajaj Allianz, TCS, Emami

Bio-Tech Ltd, Western Union, Sree Kshetra Dharmasthala Rural

Development Project, and RUDSETI etc.

11. The Bank is listed on the National Stock Exchange, Bombay Stock

Exchange and Bangalore Stock Exchange.

12. The layout of the Bank is spacious and has proper seating

arrangement (like chairs, sofa etc.) and water coolers too to make the

customers feel comfortable upon their arrival in the bank.

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5.2 RECOMMENDATIONS

1. The bank has a lot of scope to enhance its retail banking. The keys to

its retail strategy can be developing new products and services,

networking its branch locations, developing its distribution channels

including ATMs and internet banking.

2. The bank should expand its presence in international markets.

3. The bank should also enhance its technological capabilities and

continue to implement its Core Banking Solutions plan. This

connectivity will help it understand its customers better, manage its

customer relationships and allow it to offer a large number of value

added products and to sell its products more effectively.

4. Having such a strong technological base, the bank must use these

capabilities to differentiate its products and services from those of its

competitors.

5. Though the bank has a nationwide presence in the agriculture and

small-scale industry sectors but it still has a lot of scope for

strengthening its priority sector banking business. One aspect of its

strategy could be to further strengthen its ties with the agricultural

community by providing training and social support programs for the

rural populace.

6. Non-performing assets are affected by number of factors e.g.,

increased competition, a recession in the economy , decrease in

agricultural production, decline in commodity and food grain prices,

adverse fluctuations in interest and exchange rates, changes in

Government policies, laws or regulations, business expansion. Since

the bank has huge NPA, it should take measures to mitigate the effect

from these factors.

7. The bank needs to recruit more people to fill up the manpower

requirements arising because of its expansion process. Moreover, the

bank needs to recruit young blood too.

Syndicate Bank ______________________________________________________________


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

more customers and combat competition posed by the private sector

players.

Syndicate Bank ______________________________________________________________


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