CHAP 1

INTRODUCTION

1.1 Industry Profile

1.2 Company Profile
1.3 Product Profile

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 personnels average age is 40+. These banks are also
subject to limited government interference. But 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.

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.

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.

Best use of IT for customer service in Semi-urban and Rural areas by IDRBT,
Hyderabad.
Best Core Banking Project among Large Banks in Asia Pacific Region The Asian
Banker IT Implementation Awards
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.

1.3

PRODUCT PROFILE

BANKING ACTIVITIES : This activity includes the following :

Syndicate Bank Global Debit Card

Syndicate Bank Global Credit Cards

Bancassurance: The bank provides insurance services in association with Bajaj

Allianz.

Life Insurance Products

Non Life Insurance

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

INVESTGAIN
CASHGAIN
CHILDGAIN
RISKCARE
TERMCARE
LIFETIMECARE
SWARNA-VISHRANTI
UNITGAIN
LOAN PROTECTOR
SYNDDRIVER

Cash Management (SCMS)

DEPOSIT SCHEMES :
Synd 400 Plus and Synd 500 Plus
Savings Deposit Account:
Special Premium Savings Accounts
Fixed Deposit Scheme:
Vikas Cash Certificate:
Social Security Deposit:
Senior Citizens Security Deposit
Syndicate Suvidha Deposit

Cumulative SyndTaxShield Deposit Scheme

Pigmy Deposit
Super Premium Savings Bank Account
Synd Samanya Savings Bank Account (No Frills Account) :
SyndFlexi Current Account

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.

LOAN PRODUCTS :
SyndRent
SyndSaral:
SyndSenior:
SyndVidyarthi:
SyndNivas:
SyndNivasPlus:
SyndPigmy:
SyndKisan:
SyndVahan:
SyndLaghuUdyami:
SyndMahila:
SyndMortgage:
SyndPravasi:
SyndSmallCredit:
SyndSuvidha:

SyndUdyog:
SyndVyapar:
SyndJaiKisan
SyndShakti

AGRICULTURAL LOAN PRODUCTS :

Animal Husbandry Scheme
Development of Irrigation Infrastructure
Farm Mechanization Schemes
Hi-tech Agriculture
SyndJaiKisan
Jewel Loans for Agriculture
Land Development Schemes
Purchase of Land for Agricultural Purpose
Rural Employment Generation Program
Solar Water Heater Systems
Syndicate 2/3/4 Wheelers Scheme
Syndicate Farm House Scheme
Syndicate Kisan Credit Card(SKCC)
Tenant Farm Loan

OTHER SERVICES :
Tele Banking
Internet Banking
Any Branch Banking

Synd Bill Pay

On-Line Collection of Direct Taxes
On-line Railway Ticket Booking
Western Union Money Transfer
SyndInstant - (RTGS System for instant transfer of funds)
Electronic Funds Transfer (EFT) System
Syndicate Gift Cheques
Insurance Cover for Deposits
Stop Payment Facility
Dormant Accounts
Safe Deposit Lockers

CHAP 2

ORGANIZATION STRUCTURE

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

Dept

12. Central Accounts & Legal

5. Recoveries Dept
6. Dept. of Information Technology
7. Risk Management & Monitoring Dept.
8. Treasury & International Banking Division

13. Personnel Department

14. Inspection Department
15

Vigilance Department

Regional Offices

Branches

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

3.1

ACCOUNTS

The functions of this department are:

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.

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.

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.

Maintain government deposits: This department also helps the bank to maintain the
government deposits like bonds, bills etc.

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.

3.2

AUDIT AND INSPECTION

The important functions of this department are:

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.

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.

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 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 fortyeight 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.

3.3

CREDIT

The important functions of this department include:

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 :
Global advances Rs. 52839 crore
Domestic advances Rs. 47233 crore
Priority sector credit Rs. 18441 crore
Agricultural credit Rs. 8050 crore
Retail credit Rs. 13824 crore
Advances to housing loans Rs. 4894 crore
Credit flow to export credit Rs. 1958 crore
Global credit-deposit ratio 67.2%

The advances plan of the bank is:

Global advances to reach Rs. 62657 crore

Domestic advances to reach Rs. 56983 crore

Priority sector credit to reach Rs. 23971 crore

Agricultural credit to reach Rs. 8700 crore
Retail credit to reach Rs. 17552 crore
Credit flow to export credit to reach Rs. 2298 crore
Global credit-deposit ratio to reach 63.73%
SME advances to reach Rs. 5400 crore
Add one lakh SyndVidyarthi accounts.

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 :
HYPERLINK "http://syndicatebank.in/scripts/syndudyog.aspx" \t "_blank" Synd
Udyog
HYPERLINK "http://syndicatebank.in/scripts/SyndVyapar.aspx" \t "_blank" Synd
Vyapar
HYPERLINK "http://syndicatebank.in/scripts/SyndLaghuUdhyami.aspx" \t "_blank"
Synd Laghu Udhyami Credit Card (SLUCC)
HYPERLINK "http://www.syndicatebank.in/scripts/syndswarojgarcard.aspx" \t
"_blank" Synd Swarozgar Credit Card (SSCC)
HYPERLINK "http://www.syndicatebank.in/scripts/syndgencreditcard.aspx" \t
"_blank" Synd General Credit Card (SGCC)
HYPERLINK "http://syndicatebank.in/scripts/syndsmallcredit.aspx" \t "_blank" Synd
Small Credit
HYPERLINK "http://www.syndicatebank.in/scripts/syndshakti.aspx" \t "_blank" Synd
Shakthi

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 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, banks website, walk-ins, employment exchanges etc. The
short listed employees have to go through a series of interviews to be selected.

3.5

INFORMATION TECHNOLOGY

We cannot function with yesterdays 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-flexs FLEXCUBE and IBMs
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.
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)

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 panIndia branch network.
CP Swarankar, the banks CMD said Syndicate Bank was already reaping the fruits of
this focus on financial inclusion. This focus is expected to boost the banks share of
CASA (current account and saving accounts) base.
The following products are now marketed:
Investigain
Cashgain
Childgain
Riskcare
Termcare
Lifetimecare
Swarna-vishranti
Unitgain
Loan Protector
Synddriver
syndsuraksha

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:

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.
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.
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.
Targets : The targets set by the bank are :
Global deposits to reach Rs. 102000 crore with a growth of 29.71%
Domestic deposits are projected to grow at 30.43% to reach Rs. 97000 crore.
Core deposits are projected to grow at 41.17% to reach Rs. 64000 crore.
Current deposits are projected to grow at 26.75% to reach Rs. 9500 crore.
Security deposits are projected to grow at 30.52% to reach Rs. 21500 crore.
Low cost deposits are projected to grow at 29.34% to reach Rs. 31000 crore.
Pigmy deposits are projected to increase from Rs. 1530 crore to Rs. 2400 crore.
NRI deposits are projected to grow at 22% to reach Rs. 3100 crore.
Bulk deposits at finer rates will be restricted below Rs. 30000 crore.
Customer base to increase by 3 million to 22 million.

The strategies to be followed to achieve the plan are:

Low cost deposits and core-term deposits campaign with total staff involvement.
Focus on increased pigmy deposit level through reinvented pigmy plus 07.
Appointment of new pigmy agents
Leverage new accounts added during 2007-08 to increase low cost deposit.
Bringing younger generation to banks fold to turn available production and brand
image.

Cross selling of our full range of technology driven products, optimum utilization of
our delivery channels.
Focused marketing approach to broad base our clientele.
Opening of new branches to increases business.
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.

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:
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).

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
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.

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

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.

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

Synd Adalat: It is a process wherein the borrowers are given opportunity to settle
their dues under compromise. Such Adalats would be organized at General
Managers Office / Regional Office/cluster centers to enable the borrowers to
participate in person and put forth his views.
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.

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:

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.

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 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.

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.

Fund Investment and Management: The company also helps its customers to invest
their money in mutual funds, NSC certificates etc.

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.

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.

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:

PARA BANKING ACTIVITIES :

Syndicate Bank Global Debit Card

Syndicate Bank Global Credit Cards

Bancassurance:

Life Insurance Products

Non Life Insurance Products

Cash Management (SCMS) deposit schemes

Deposit schemes

Synd 400 Plus and Synd 500 Plus

Savings Deposit Account
Special Premium Savings Accounts (CBS branches only)
Fixed Deposit
Vikas Cash
Social Security Deposit
Senior Citizens Security
Syndicate Suvidha
Cumulative Deposit
Synd Corporate
Suvidha Deposit
SyndTaxShield Deposit Scheme
Pigmy Deposit
Super Premium Savings Bank Account
Synd Samanya Savings Bank Account (No Frills Account)
SyndFlexi Current Account

SYND BANK SERVICES (BPO)

LOAN PRODUCTS :
SyndRent
SyndSaral

SyndSenior
SyndNivas
SyndKisan
SyndVahan
Synd Laghu Udyami
Synd Mahila
Synd Mortgage
Synd Pravasi
SyndSmallCredit
Synd Suvidha
Synd Udyog
Synd Vyapar
SyndShakti

AGRICULTURAL LOAN PRODUCTS

Animal Husbandry Scheme
Development of Irrigation Infrastructure
Farm Mechanization
Hi-tech Agriculture
SyndJaiKisan
Jewel Loans for Agriculture
Land Development Schemes
Purchase of Land For Agricultural Purpose
Rural Employment Generation Program
Solar Water Heater
Syndicate 2/3/4 Wheelers Scheme

Syndicate Farm House Scheme

Syndicate Kisan Credit Card(SKCC)
Tenant Farm Loan

OTHER SERVICES :
Tele Internet Banking
Any Branch Banking
Multi City Accounts
Synd Bill
On-Line Collection of Direct Taxes
On-line Railway Ticket Booking
Western Union Money Transfer
SyndInstant - (RTGS System for instant transfer of funds
Electronic Funds Transfer (EFT) System
Syndicate Gift
Insurance Cover for Deposits
Stop Payment Facility
Dormant Accounts
Safe Deposit Lockers
Tele Banking
Internet Banking
Any Branch Banking
Multi City Accounts
Synd Bill Pay
On-Line Collection of Direct Taxes
On-line Railway Ticket Booking

Western Union Money Transfer

SyndInstant
Electronic Funds Transfer (EFT) System
Syndicate Gift Cheques

CHAP 4

SWOT ANALYSIS

4.1 Swot Analysis

4.2 Vision
4.3 Mission
4.4 Goals
4.5 Objectives

4.1

SWOT ANALYSIS

STRENGTHS:

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.
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.
The bank is the first public sector bank to provide BPO services and is also ISO
certified.
The bank is well aware of its social responsibility and has been actively involved in
the development of the society since its inception.

WEAKNESSES:

Increasing NPA.
Poor qualification of many employees.
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.

OPPORTUNITIES:

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.
Expansion prospects in retail, SME and agricultural sector.
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.
The Bank should also expand its presence in international markets.

THREATS:

Increasing competition posed by global and private sector banks.

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

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.

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 customers needs so
as to give them an exhilarating and enthusiastic experience.

Acquire accounts aggressively

Year of NPA resolution

4.4

GOALS

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

Business: To achieve global business of Rs. 200 thousand crores by March 2009.
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.
Advances: To build qualitative asset base of around Rs. 80000 crore by March 2009
to augment the income portfolio of the bank.
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.

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.
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.
Foreign exchange and treasury: To profitably manage the forex and investment
assets of the bank to achieve an export-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.
Profitability: To make every branch a profits centre and ensure best possible returns
to the shareholders.
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.
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,
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.
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.

4.5

OBJECTIVES

To have an overview of the organization.

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

CHAP 5

FINDINGS

Findings
Recommendations & Suggestions

5.1

FINDINGS

Syndicate Bank is Indias seventh largest public sector bank (in terms of total
deposit).
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).
As many as 58 per cent of the bank's branches are in rural areas.
The average age of the employees is 40+.
In BSE, the Bank is listed in Group (B).
At CBS branches the working hours are 5 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.
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.
Syndicate Bank has also been awarded an ISO 9001:2000 certificate.

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 Bajaj Allianz, TCS, Emami Bio-Tech Ltd,
Western Union, Sree Kshetra Dharmasthala Rural Development Project, and
RUDSETI etc.
The Bank is listed on the National Stock Exchange, Bombay Stock Exchange and
Bangalore Stock Exchange.
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.

5.2

RECOMMENDATIONS

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.
The bank should expand its presence in international markets.
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.
Having such a strong technological base, the bank must use these capabilities to
differentiate its products and services from those of its competitors.
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.
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.
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.
The Bank should market its products more aggressively to attract more customers
and combat competition posed by the private sector players.