CHAPTER-2Agricultural Finance By Commercial Banks1) Introduction2) Agricultural finance by commercial banks3) Financing of primary agricultural credit societies4) Growth of agricultural credit5) Difficulties in lending agricultural finance.

INTRODUCTIONEvery production activity requires finance in India, like industry, agriculture needs working capitals and more our agriculture is paying a vital role for economic development. Because major source of income to the Government is received only in the form of agricultural. So agricultural finance is the back bone for the agricultural development in India.Agricultural finances means extending finance and its requirements for agricultural activities. It means giving financial assistance to the agriculture for discharging of agricultural activities.In order to give good facilities and to provide good means of credit facilities of the Indian farmer, This agricultural finance may rural as its but contribution to the agriculture. The care of commercial banks as already pointed out, stand on the entirely different footing, they are lending for agriculture forming only around 18% of their portfolio.AGRICULTURAL FINANCEAgricultural is an unorganized profession in the country. Its success and failure depends, to a large extent, on climate factor. Still its all round development depends on the availability of finance. Professional money lenders were the only source of credit to agricultural till 1935. They us to charge unduly high rates of interest and follow serious practices while giving loans and recovering them. As a result, farmers were heavily burdened with debts and many of them perpetuated debts. These practices and there were instances of repots also.With the passing of RBI Act 1934, district Central Cooperative Banks Act and land development Banks Act, agricultural credit received impetons and there were improvements in agricultural credit, A powerful alternative agency came into being. Large scale credit became available with reasonable rates of interest at easy terms, both in terms of granting loans and recovery of them. Both the co- operative banks advances credit mostes to agriculture. First bank advances short term and medium term loans while the second bank advances long term loans. The RBI as the Central bank of the country took lead in making available to agricultural through these banks by laying down suitable policies.Although the co-operative banks started financing agriculture with their establishments in 1930s real impaelons was received only after independence when suitable legislation were passed and policies were formulated. There after, bank credit to agriculture made phenomenal progress by opening branches in rural areas and attracting deposits..Still its all around development depends on the availability of finance. Credit or finance plays as vital role in agricultural progress. But agriculture in India is facing serpous credit problems.CREDITS NEEDS OF FARMERS:-Credit needs of the formers can be classified on the basis of 2 factors1) On the basis of time2) On the basis of purpose

1) On the basis of time:-On the basis of time, agricultural credit needs of the formers can be classified into categories. They area) Short term loans:-Short term loans are required for the purpose of seeds fertilizers, marketing of agricultural produce, payment of wages to hired labour, litigation etc The period of such loans is less than 15 months short term loans are provided by money lenders and co- operative societiesb) Medium term loans:-These loans are extending from 15 months to 5 years. These loans are required for baying cattle, small agricultural implements, repairs and construction of well etc. These loans are generally provided by money lending relative of farmers, co- operative societies and commercial bank.c) Long term loans:- The period of long term loans extends beyond 5 years. These loans are required for permanent improvement on land, purchase of costly machinery and equipments, digging, Tube wells repayments of old debts. Etc. These loans are generally provided by co- operative land development banks.2) On the basis of purpose:-On the basis of purpose, the credit needs of the farmers can be classified into 3 categories as given below.a) Productive loans:-All credit requirements which directly influence agricultural productivity are productive loans, Repayment of these loans is generally not difficult.b) Consumption loans:-Between the movements of marketing of agricultural produce and harvesting of the next crop there is a long interval time and most of the formers do not have sufficient income to surtain them through this period. Therefore they may be forced to take consumption loans.c) Unproductive loan:-The loans required for litigation, repayment of old debts, marriage festival and various other religious ceremonies etc.. are called unproductive loans repayment of there loans is very difficult.AGRICULTURAL FINANCE BY COMMERCIAL BANKThe post played by the Indian commercial banks in financing agriculture is not very significant. It is true that commercial banks finance to a certain extent the movement of crops. But the benefit of this is largely derived by big traders.In the USA credit to farms is given in a big way by commercial banks. On the other hand, in India direct assistance to agriculture is not considered by the commercial banks as their business variety of reasons may be pointed out which discourage the banks fen devoting their attention to agricultural finance. Among the reasons pointed out by central.Banking enquire committee the un economic nature of land holdings, the poor resources of agriculturists and lack of securities acceptable to the banks are important ones.Further the absence of was having anchoring facilities and lack of standardization and grading of agricultural produce and problems confronting the banks in actively participating in agricultural finance. The illiteracy of the rural people and their lack of banking habits are additional factors causing headache t the commercial banks.FINANCING OF PRIMARY AGRICULTURAL CREDIT SOCIETIES In this connection, it may be pointed at that the RBI, in consultation with the RBI, had formulated in 1969 a financing primary agricultural credit societies with a view to filling up the credit gap existed in the areas of some the direct central co- operative banks which were financially and administratively weak. The scheme provided a network of retail outlets to commercial banks in the form of variable or potentially viable primary agricultural credits for extending credit facilities to cultivations spread out the remote villages. The scheme primary agricultural credit society was initially introduced in June 1970. The commercial banks would charge to primary agricultural credits the rate of interest as dividend by reserve bank from time to time in providing the credit facilities, the commercial banks would generally follow the production oriented system of lending.The main objectives of the Scheme are that the commercial banks would:-1) Meet the production and investment credit needs of agricultural.2) Finance to small formers by encouraging them to become members of the primary agriculture credit3) Revitalized the primary agriculture credits so that they become efficient because organization at the village level and 4) Help in the process of speeds rehabilitation of weak DCCBS by taking out their affliated societies financing.Short term Credit structure by commercial Banks:- The short term credit structure has at its base, the primary agricultural credit societies with are expected to be multipurpose in character but in a large number of cases deal mainly in credit. Normally agricultural credit for short term basis is used for lending to the formers for the purpose of growing seeds, purchasing seeds fertilizers etc.,, As on 30th June 1986 there were 92408 primary agricultural credit societies supplying short term and medium term agricultural credit. Their coverage extends to remotes parts of the country. These credits are supplied for 1 to 3 years and not more than that.The total loans issued by commercial bank through primary agricultural credit societies as short term advances increased from Rs. 1.023 crores in 1975-76 to Rs. 3,14 crores in 1985-8 of which 2,747 crores were for short term purposes. The total loans issued had shown an annual growth rate of 11.8% during the past 10 years.Long term Credit facilities by commercial Banks for Agricultural purpose:- Long term agricultural finance is issued for more than 5 year. It is an advance used for the purpose of purchase of land, machines extending land etc..,. Before nationalization of major commercial banks in 1949 the land mortgage banks were only the institutional agency for purveying long term credit for agriculture.With the selling up of the agricultural refinance corporation the emphasis was shifted to schematic loans of late the structure is financing not only agricultural fitted investments but also several developmental activities such as dairy poultry sheep rearing and fisheries which the farmers take up to supplement.However, after the multi agency approach for agricultural credit was adopted and commercial bank entered in field in a big way the performance of LDBS has shown a declining trend. As in the case of short term credit structure, the long term credit structure is also burdened at present with a high rate of delinquency declining profitability for want of adequate margins between the cort of rising final and the lending rates over which they have to control excessive external interference and govt. intervention.

DIEFFICULTIES IN LENDING AGRICULTURAL FINANCE BY COMMERCIAL BANK:-1. In many rural parts especially in farmer zamindari areas, the land records are still in no shape.2. The heavy financial burden on the agriculturist as result of high stamp duties.3. There is a lack of precise demarcation of the areas with in which the different financial institutions creating to the rural sector are to operate. This leads to overlapping of operational areas, double financing etc..4. Although many of our commercial banks have already established suparate agricultural department to help the agriculturists, they have get to chack out appropriate policies with vision and enthusiasm.5. The average amount of advance per agricultural barrowers is not very high and this increases the cost of providing agricultural credit as compared to other sector.6. The loan application forms are often complication which do not conform to the level of literacy of the agricultural borrower. The processing of loan application forms aggravates the problems such delays in many cases can be attributed to the hesitance or induision on the part of the branch manager.To encourage the commercial banks in taking a more effective and active role in the field of agricultural financing the rural banking enquiry committees has made certain recommendations such as the establishment of a network of ware hours through the country the provision of facilities for the standardization and grading of agricultural produce, the widening and cheapening of remittance facilities from one center to another the removal impediments in the way of extension of modern banking facilities to rural areas. Etc..With the nationalization of 14 major commercial banks in 1969 there has been a greater involvement of banks in the agricultural sector. The total advances of all schedule commercial banks to agriculture which stood at Rs 188 crores as at the end of June 1969 increased to Rs 1055 crores as at the end of Many 1978. Not only that there has been as increased an advances but there has also been a shift towards small agricultural scheduled commercial banks activity participate in financing schemes for which refinance and development corporation.As an June 30, 1979 the corporation sanctioned 6,147 schemes to commercial banks involving total financial assistance to the extent of Rs 974 crores with all this we have to admit the fact that it is difficult to promote a direct contact between agriculturist and commercial banks to any appreciable extent. The majority of rural population consists of small formers spread over nearly 6 lakhs villages with different topography and climatic conditions. To reach them all with these branches is certainty a difficult tast.The banks on their part by to defend themselves about their unsatisfactors performance by pointing out that too many agencies are handling rural credit, Banks provide credit to state land development banks, state co- operative banks and regional rural banks and get refinance from RBI. At the same time the facts has to be admitted that the base level credit outlets already existing in the Co-operative structure in order to contribute effectively to the regeration of rural economy.

GROWTH OF AGRICULTURAL CREDIT The loans sanctioned for both short and long term periods was 44% of total agricultural credit corporation dingly commercial banks including RBBs have raised their share rural credit form 45% to 59% during this period. The commercial banks also adopted various schemes for the growth of agricultural credit to the farmers. They are,1. Small term development agency:-The small farmers development have been established though out the country to help small farmers in selected. These agencies performs the following functionsa) To locate small but potentially viable formers in the area.b) To identify the problems of such formers.c) To help them in getting institutional credit input etcThe objective of these agencies is to strengthen the production capacity of the small farmers each agency is meant to benefit about 50,000 potentially viable farmers through assistance in the form of subsidized irrigation soil conservation, storage, marketing and subsidiary occupation.2. Marginal farmers and agricultural labourars development agencies:-These agencies have been established to the marginal farmers and agricultural labours to improve their income earning capacity farmers with holding up to one acre and agricultural labourers getting more than 50% of their income from agriculture are covered under the scheme. The farmers identified under the SFDA and MFAL schemes are given credit by commercial banks and co- operative societies.3. The formers services societies have been organized on the recommendation of the national commission on agricultural. They are organized by the public sector banks in selected SFDA areas to provide integrated credit and other services particularly to small and marginal farmers these societies are multiple in character they are expected to a) short term medium long term loans supply inputb) Arrange for marketing the produce.

CHAPTER-3SYNDICATE BANK PROFILE

1. INTRODUCTION2. HISTORY3. VISSION STATEMENT AND MISSION STATEMENT4. FUNCTIONS AND SERVICES5. GROWTH6. DECENTRALIZATION7. PROFIT AND LOSS A/C AND BALANCE SHEET

Introduction:-Syndicate Bank was established in 1925 in Udupi, the adobe of Lord Krishna in coastal Karnataka with a capital of Rs. 8000/- by three visionaries. Sri Upendra Anantha Pai, a businessman, Sri Vaman Kudva, an engineer and Dr. T.M.A Pai, a physician who shared a strong commitment to social welfare. 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 banks brand equity today and the bank collects around Rs. 2 crores per day under the scheme.The progress of syndicate bank has been synonymous with the phase of progressive banking ion India. Spanning over 80 years of pioneering expertise, the bank has created for itself a solid customer base comprising customer of two or three generations. Being firmly rooted in rural India and understanding the grass root realities, the banks perception had vision of further 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 banks 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.The bank is well equipped to meet the challenges of the 21st century in the areas of information technology, knowledge and competition. A comprehensive It plan is being put in place and the skills and knowledge of the banks personnel are being upgraded through a variety of training programmes to promote customer delight in every sphere of its activity. The bank has launched an ambitions technology plan called centralized banking solution (CBS) where by 500 of our strategic branches with their AIMs are being net worked nation wide over a 4 year period. The bank is pious amo0ng public sector banks on launching CBS. Our bank has already achived CBS implementation among all its branches. Thus, The bank is 100% CBS enabled.HISTORY Established in the year 1925, syndicate bank had its 1st office in the coastal region of Karnataka, Udupi. It was then named as Canara Industrial and banking Syndicate Ltd. The bank was initiated by a trio- Sri Upendra Ananth Pai, Sri VamanKudva, and Dr. TMA Pai, with a capital of rs. 8000. During that time, the crisis in the handloom industry crippled the local weavers completely. The main aim of Syndicate bank was to provide financial assistance to them, by mobilizing small savings from the community.Three years later, in 1928, the bank came up with pigmy deposit scheme, in which it collected as little as 2 annas per day, at the doorsteps of the depositors through its agents. The scheme existing till date, earns the bank a sum of Rs.2 crore daily. In the same year Syndicate bank opened its 1st branch at Brahmover in Dakshina Kannada District. It became a member of the clearing house for the 1st time at Bombay, in 1937. Almost a decade later, Syndicate Bank opened 29 branches in a single day in rural areas. Its 100th branch opened at I/kal in Karnataka in 1957.The bank with it Socio-economic aim was making extensive growth and advancement and entered foreign Exchange business by opening foreign exchange department at Bombay. In 1964, the bank changed its name to Syndicate Bank Limited and the head office was also shifted from Udupi to Manipal. The bank had then setup an economic research department, being one of the first few banks to emphasize on research in banking, even before nationalization. In 1971, it opened the 1st specialized branch in foreign exchange, in Delhi. 5 years later, it opened its 1st overseas branch opened at London.In 1984 Syndicate bank opened its 100th branch in Haus khas, Delhi. In the same year, it undertook management of Musandam exchange co. in MUSCAT 5 year then in 1989, syndicate bank opened its 1500th branch at Kanakumbi. In 1999, it raised a capital of Rs 125 crores from its more than 4 lakh share holders. Next year, in 2000 the bank established its 1st specialized capital market services at Mumbai. In 2003, Syndicate Bank entered in to a MOU with Bajaj Allianz, for distribution of life Insurance products. In 2004 syndicate Bank also stared utility bill payment services through interest banking introduced. In 2005, the bank commenced the online reservation of railway tickets through Indian railway catering and tourism corporation Ltd for its customers. It was during this time that it entered into a Mov with SFAC for promoting of investments in Agri -business products. The 2000th branch was opened at Tondiapet, Chennai, in 2006. In the same year the bank commenced the 1st BPO outfit of a nationalized Bank, Syndicate bank services Limited. This was a wholly owned subsidiary of Syndicate bank.With the age of progressive banking, Syndicate bank has created a name for itself in the last 80 years. Rooted in rural India, the bank has a clear picture of the grass root realities and a vision future India. Changing with the changing times, the bank has well equipped itself with all the facilities of the new age, without, however, attering its distinctive socio- economic and cultural culture. Syndicate banks unique principle of mutual development of both the bank and the people, has won it a long list of clientle which includes both the rural and the semi- urban class.

VISION STATEMENT AND MISSION STATEMENT.Vision Statement:-Be leading financially strong universal bank, creating value for stoke holders through customer centric, technology driven and employee friendly approachMission Statement Be a leading provider of banking solutions providing a range of financial services to society. Be the most preferred place to work where employees feel pmoud and motivated. Have state of the art technology and infrastructure creating delight among all stoke holders To deliver strong financial and operational performance COLOUR PATTERN OF SYNDICATE BANK LOGOThe bank has undertaken a comprehensive exercise on hanging the back ground colour of the logo of the bank. The repositioning of the logo has been done with major changes in the basic colour retaining the picture of DOG , symbolizing the tradition of faithfulness and friendliness. The pictorial dog of the logo is in Sync with our bank Motto- Faithful and Friendly. The combination of orange, Yellow and white colours give uniqueness to our logo.ORANGE:-Orange is a unique colour which denotes power, energy, enthuriasm and creativity. Thought fullness and sincerity. It is warm, vibrant and flamboyant colour. It is energy combined with fun, the colour of the risk taker the extrovert and the uninhibited. In color psychology it means adventure, optimism, self confidence and sociability.More gentle than red, orange represents a more feminine energy and the energy of creation. In a nutshell, orange indicates Banks vibrancy competency and confidence to reach the next horizon of business.YELLOW Yellow, the colour that relates to acquired knowledge. It is the colour which resonates with the left or logic side of the brain stimulating our mental faculties and creating mental ability and perception. Being the lightest hue of the speclrum, the colour psychology of yellow is uplifting and illuminating, offer hope, happiness, cheerfulness and fun. Yellow is the best colour to create enthusiasm for life and can awaken greater confidence and optimism.Yellow helps with decision making as it relates to clarity of thought and ideas. Yellow is non emotional, coming from the head rather than the heart.Yellow indicates innovation, backing the vibrancy and quick decisions through collective work and thinking.Our Bank, with its large network of branches and dedicates human capital has an ambitions goal of achieving higher level of business with the contribution from each and every syndian with utmost honestly, perfection and commitment, our endeavour shall be to make this possible by way our team work supported by the New Brand Identify.FUNCTIONS AND SERVICES:-The functions of syndicate banks are briefly highlighted in followinga) Primary functions of Banks The primary functions of a bank are also known as banking functions. They are the main functions of a bank . these primary functions of banks are explained below1) Accepting Deposits:-The bank collects deposits from the public. These deposits can be of different types, Such as:- Saving Deposits Fixed deposits Current Deposits Recurring DepositsSaving Deposits:- This type of deposits encourages saving habit among the public. The rate of interest is low. A t present it is about 5% p.a. withdrawals of deposits are allowed subject to certain restrictions. This account is suitable to salary and wage earners. This account can be opened in single name or in joint names.Fixed Deposits:-Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid, which varies with the period of deposits. Withdrawals are not allowed before the expiry of the period. Those who have surplus funds go for fixed deposit.Current Deposits:-This type of a account is operated by businessman, withdrawals are freely allowed. No interest is paid. In fact, there are services charges. The account holders can get the benefit of overdraft facility.Requiring Deposits:-This type of account is operated by salaried persons and petty traders. A certain sum of money is periodically deposited into the bank. Withdrawals are permitted only after the expiry of certain period a higher rate of interest is paid.2) Granting of Loans and AdvancesThe bank advances loans to the business community and other members of the public. The rate charged is higher than what it pays on deposits the difference in the interest rates is its profit.The type of bank loans and advances are:- Cash credit Demand Loans Short term LoansCash credit:- Cash credit refers to a loan given to the borrower against his current assets like shares, stocks, bonds etc. A credit limit is sanctioned and the amount is credited in his account. The borrower may withdraw any amount within his credit limit and interest is charged on the amount actually withdrawn.Demand Loans:-Demand loans refers to those which can be recalled on demand by the bank at any time. The entire sum of demand loan is credited to the account and interest is payable on the entire sum.Short term Loans:- They are given as personal loans against some collateral security. The money is credited to the account of borrower and the borrower can withdraw money from his account and interest is payable on the entire sum of loan granted.

Secondary functions:-1. Overdraft Facility:-It refers to a facility in which a customer is allowed to overdraft his current account upto an agreed limit. This facility is generally given to respectable and reliable customers for a short period.2. Discounting bills of ExchangeIt refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before the maturity. After deducting the commission, bank pays the balance to the holder. On maturity, bank gets its payment from the party which had accepted the bill.3. Agency Functions:-There banks also perform certain agency functions for their customers. For these services, banks charge some commission from their clients.Some of the agency functions are:-1) Transfer of Funds:- Banks provide the facility of economical and easy remittance of funds from place to place with the help of instruments like demand drafts, mail transfers, etc2) Collection and payment of various items:- Commercial banks collect cheques, bills, interest, devidends, subscriptions rents and other periodical receipts on behalf of their customers and also make payments of taxes, insurance premium, etc.. On standing instructions of their clients 3) Purchase and sale of foreign exchange:-Some commercial banks are authorized by the central bank to deal in foreign exchange on behalf of their customers and help in promoting international trade.4) Purchase and sale of securities:- commercial banks buy and sell stocks and shares of private cos as well as government securities on behalf of their customers.5) Income tax consultancy:- They also give advice to their customers on matters relating to income tax and even prepare their income tax returns.6) Trustee and executer:- They preserve the wills of their customers as trusts and execute them after their death as executors.4. General utility functions:-Commercial banks render some general utility services like:-1) Locker Facility:- Commercial banks provide facility of safety vaults or lockers to keep valuable articles of customers and in safe custody2) Travelers cheque:- Commercial banks issue travelers cheque to their customers to avoid risk of taking cash during their journey.3) Letter of credit: They also issue letters of credit to their customers to certify their credit worthiness4) Underwriting securities: They also undertake the task of underwriting securities. As public has full faith in the credit worthiness of banks, public do not hesitate in buying the securities underwritten by banks.THE GROWTH OF SYNDICATE BANKThe canaral Industrial and banking Syndicate limited was registered on Oct 20,1925. The three founder directors of the bank were1. Sri Upendra Ananth Pai2. Sri K.S. Kudva3. Dr. TMA. PaiA business man, an engineer and a doctor respectively. Among the early share holders the were quit a number of weaves also.The year 1928 marked the turning point and these after the branch expansion programme steadily grew extending the spare of operation of the bank over a wide region. The 1st bank outside the district was opened in 1929 at Kumpta, a growing business center in the neighboring north Canara District.In April 1937 the bank opened its Mumbai branch and became a member of the during house in the same year. The branch expansion programme was organized on 2 fronts by opening new branches in selected places and by taking over the assets and liabilities of small banks. The considerable part of the growth was thus due to the MUKUND Nivas a two stories building in Udupi had been the head office of the bank since 1949. The expansion in the number of departments and person created the need for more spacious office accommodation. The head office of the bank therefore was shifted from Udupi to a newly constructed imposing building at Manipal in the same year 1964.Early in 1964, an agricultural finance department wads set up to advance credit exclusively for agricultural purpose.After 1965 the working results of the bank where impressive enough judged by the net profit declared and the huge amount dividend paid.Syndicate bank was one of the most and 1st few banks to develop research department before bank nationalization. In the wake of social content of the bank Dr. TMA Pai resigned from the board of directors on 15 December 1967 . Mr TMA Pai succeed him as the chairman and managing director. The bank name was changed in 1964. Though the registered name to the bank was Canara Industrial and Banking Syndicate Limited. It was popularly called the Syndicate Bank.The bank had completed 50 years of banking on 20th Oct 1975 and the golden jubilee celebrations was held at head office on 19th and 20th Oct, 1975. By then it had grown into a big bank in public sector.In Pursuance of official language policy of govt. of India, Hindi cell was established on 1974, which was renamed as official language cell in 1976 and upgraded in to a official language division in 1982.Establishment of regional rural Banks:-In the light of govt. policy and threat on rural development it was syndicate bank established the 1st regional rural banks appropriately called Prathama Bank. The entire bank has sponsored to regional rural banks now they are as follows:=1) Prathama Bank, Moradabad2) Guron Grameena Bank, Gurgon3) Rayalaseema Grameena Bank, Guddapath4) Nalprabha Grmeena Bank, Dharwad5) North Malbar Grameena Bank, Cannanore.6) Sree Anantha grameena Bank, Ananthpura7) Pinakini grameena Bank, Nellore8) Bijapur Grameena Bank, Bijapur9) Netharavathi Grameena Bank, Managalore10) Varadu Grameena Bank, Kumta. With a view to expand foreign exchange business an overseas branch had been opened in London on 17-8-1976. Among the innovation made by the bank during 1975 the Firm Clinic project introduced during 1973, occupied a prominent position the project is an attempt to implement the concepts of integrated credit and extension services.The year 1978 had been indeed a mile stone in the history of the progressive growth of the bank. The thousand branches were opened at HAUZKHAS in New Delhi on 15 the December 1978.During the 1982 syndicate bank with the collaboration of syndicate agricultural foundation canara bank and Shree Dharmastala Manjunatheswara Education Trust established the rural development and self employment training institutes in various parts of the country. The main objective of these is to motivate employed rural youth to take up self employment activities in rural areas and to ensure .The come the momentous day in the history of the Indian banking July 19, 1969. When the govt. of Indian nationalized the 14 major Indian scheduled commercial banks and syndicate bank was one among the banks amalgamations and mergers the 18 banks merged with the bank during the decade amounted for 48 branches.The increasing participation of the bank in granting industrial advances nessitated the establishment of a separate industrial finance department. In 1961, This department was setup with a view to encourage advance to small industries and enterprising entrepreneurs in keeping with the policy of assisting the common man. An innovation in the field of female employment in banking industry was made by the syndicate bank by operating up All womens Branch. The 1st all womens branch was opened in August 1962 at Sheshadripuram Bangalore with 13 female staff. It was in 1963 that the bank entered the field of foreign exchange. The RBI granted license to use to bransact foreign exchanging business in April 1963 and the department was in Mumbai on April 30. 1963. That the trained youth are given advisory and credit support by the bank.Mechanization of fishing was accelerated by the bank on the West cost by financing pure. Since and other mechanized boats with the commissioning of the ICIM 290 5/ 50 computer system in April 1984 at the corporate level, the bank entered the age of electronics.The bank completed 60 year of banking on 20th Oct 1985 and a week long Diamond Jubilee celebrations were held at Head office during 14 -20 October 1985 at present the bank is operating in 18 status and 6 union territories in the Indian Union besides as overseas branch at London in united kingdom.DECENTRALIZATION:-With the growth of bank had field the need of decentration of division making centers. Accordingly the bank has setup a zonal office at New Delhi, in 1977 and more zonal office were setup Bangalor, Mumbai, Hydarbad and Manipal in 1978.At the 2nd level there were 14 zones located in Ahmadabad, Bangalore, Belgum, Mumbai, Culcutta, Delhi, Hydarbad, Karwar, Lucknow, Chennai, Mangalore, Pune,Trivandrum and vijaywada.1. Pigmy Deposit Scheme Bank Brand Equity:- Launched in 1928 by Dr TMA Pai one of the founder to encharge the habil of thrift and small shvings pigmy scheme symbolizes the description of the bank as a small mans big bank even today. Bank collects as low as 1 daily for 63 months at the doorsteps of 12.32 lakhs depositors through its 3100 pigmy. Daily collections under the scheme is over Rs. 2 crores on day. Pigmy deposits of the bank crossed 1120 crores as at the end of December 2001.2. PIONEER in Rural Development. 1926 established in a rural milieu to financially assist handloom weavers. 1964 first bank to venture into agricultural financing. 1966 promoted syndicate agricultural foundation. A voluntary organization of formers to disseminate scientific farming techniques. 1967 Agri card a ready facility for formers launched. 1968Bio gas finance scheme introduced in collaboration with Khadi and village instries commission to popularize non conventional source of energy. 1969 Syndicate farmers service society was organized by the bank in Hiriadka in South canara based on the recommendations of the national commission on Agriculture. 1970 Sponsored the countrys 1st regional rural bank prathama bank opened 1/10/1975 in Moradabad. 1982 jointly sponsored the 1st RUDSETI [Rural Development and Self Employment Training Institute] at Ujire in Dakshina Kannada. 1989 bank allotted services area village to bring about all around development. 1998 Kiran Credit Card Launched. 1999 in Commemoration of platinum Jublies, Syndicate rural development trust established for buying rural development institutions with initial corpus of Rs. 50 lakh. 2001 Syndicate Laghu Udyami Credit Card launched. The bank has traveled a long distance during the last 7 decades to become one of the biggest banks in India. The bank was nationalized in 1969 and govt. of India to the extent of 73.52 %. The bank rakes 803 in world and 10th in the country. The global deposits of the bank stood at Rs 285, 483mn, and the outstanding level of credit amounted RS 148,846mn, as31-3-2002. The capital equity ratio is 12.12%. The bank is rated as a category bank the total number of branches including an overseen branch in London is 1750 and the number of extension Counter is 198 manned by 25570 dedicated workforce as 2002. The bank has correspondent relations with 400 banks located world wide the total non resident deposits of the bank under different schemes are 22580mn.3. Social Lending:-Social lending is the banks strong point since inception. 70% of the bank is borrowers accounts accounting for 11.14 lakhs borrowers represent credit units of less than Rs. 25000.Priority sector advances as at February 2002 were Rs.4841 crores accounting for 46% of the banks net credit as against the mandatory requirement of 40%, 9.06 lakhs borrowers assisted under priority sectorSc/ St advances under prioprity sector are Rs 195 crores covering 1.66 lakhs beneficiaries.Bank issued 2.93 lakhs Kishan Credit cards to farmers with credit limits of our Rs 701 crorsExtend education loan 5820 beneficiaries amounting to Rs 34.60 croreAssisted 21495 beneficiaries under homing for Rs 808 croresAdvances to weaker section of were Rs 1002 crore accounting for 10.22% of banks credit against the prescribed norm of 10% 4.29 Lakhs borrowers assisted under this category.