final report_g kaushik reddy
TRANSCRIPT
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A REPORT ON
AT SYNDICATE BANK,
REGIONAL OFFICE,
KHAIRATABAD,
HYDERABAD
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A REPORT
ON
STUDY OF RETAIL PRODUCTS PROVIDED BY
SYNDICATE BANK
AT
SYNDICATE BANK, REGIONAL OFFICE, KHAIRATABAD.
The report is submitted as partial fulfillment of the requirement of PGDM
programme of ITM Business School, Siruseri, Chennai.
By
G. Kaushik Reddy
Institute for Technology and Management Business School
Siruseri, Chennai.
July 2011
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AUTHORISATION
I hereby declare that “STUDY OF RETAIL PRODUCTS PROVIDED BY SYNDICATEBANK” has been prepared by me during the academic year 2011. The project was done under the
supervision and able guidance of Prof. Padmanabhan of Institute for Technology and
Management Business School, Chennai and Mr. M.K.Goel (chief manager (Marketing)) of
Syndicate Bank in partial fulfillment of the requirement for the Post Graduate Diploma in
Management course at Institute for Technology and Management Business School, Chennai.
I also declare that this project is the result of my original work and has not been submitted to
any other institution for the award of any degree or diploma.
Date: - Signature
Place: Hyderabad G Kaushik Reddy
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ACKNOWLEDGEMENT
I have great pleasure in successful completion of the project titled “STUDY OFRETAIL PRODUCTS PROVIDED BY SYNDICATE BANK” at Syndicate Bank, Regional
office, Khairatabad.
I would like to express my gratitude to Mr. G.K.Sharma, Director, Institute for Technology
and Management Business School, Chennai for allowing me to do my Summer Internship
Project
I also thank Prof. Padmanabhan (Faculty- Finance) & Faculty guide,
Institute forTechnology and Management Business School, Chennai who has supported me with his valuable
insights into the completion of the project.
I am very much thankful to Mr. H.N.Vishweshwar (General Manager, Syndicate bank) for
providing me opportunity to do this project. I am highly indebted to Mr. M.K.Goel (chief
manager (Marketing)) — company guide and Mr. Brahma Reddy (P.R.O) of Syndicate Bank for
giving me valuable suggestions in the completion of the project and bringing out the report in the
best possible way.
G Kaushik Reddy
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EXECUTIVE SUMMARY
Banks are backbone of any economy. Banks are important for both healthy economy and
financial stability. Banks act as financial intermediaries and they finance the needs of both
individual customers and corporate sector.
Banking is an activity that involves acceptance of deposits and lending or investment of
money. Banking can be classified into Retail Banking, Corporate Banking, and Investment
Banking. Retail banking deals directly with individuals. Corporate Banking deals with providing
services to large business entities. Investment Banking is related to activities on financial
markets.
Retail banking refers to provision of banking services to individuals where financial
institutions are dealing with large number of low value transactions. In India majority of people
belong to middle class. The rise in purchasing power of middle class coupled with more liberal
attitudes towards personal debt is contributing largely to retail banking. Rural areas have large
purchase power at disposal which is an opportunity to retail banking.
Hence considering the importance, scope and growth of retail banking, retail banking has
been chosen as the area of the project. The project titled “Study of Retail Products provided by
Syndicate Bank” has been to study features of various products provided by Syndicate Bank and
to compare salient features of retail banking products of Syndicate Bank vis-a-vis other public
and private sector banks
Retail products pertain to products and services provided by the bank to individual
customers. Loans, Deposits, E banking etc… are the products offered by banks to individual
customers. A brief study has been undertaken on retail banking and the role played by Syndicate
Bank as a leading provider of retail banking services is understood.
The second part deals with the primary research where certain factors related to
Syndicate Bank such as recall level of Syndicate Bank, awareness about Syndicate Bank and its
global debit and credit card, etc…
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In the third part a reasonable comparison of the products and services of Syndicate Bank
is made with other leading banks like ICICI Bank and Andhra Bank. In this part comparison of
Total Business, Deposits and Advances of various banks is done and sector wise representation
of above comparisons is also depicted
A survey consisting of structured non disguised questionnaire has been done for a sample
of 33 people using simple random sampling method and certain conclusions are being arrived at.
Market share of Syndicate Bank being low Vis a Vis other banks, Syndicate Bank needs to make
aggressive strategies to make an effective dent in market so that more number of people open
account with Syndicate Bank. The recall level of Syndicate Bank is comparatively low and
advertising and other image building exercises need to be implemented to improve recall level.
As most of respondents have indicated that Timely processing of loan as one of the most
important feature, Syndicate Bank needs to emphasise on speedy/prompt disposal of loan
proposal. Above given suggestions will be useful for bank.
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CHAPTERISATION
CHAPTER 1- INTRODUCTION TO THE PROJECT:
The content of this chapter gives an overall idea about the project, its objectives,
Research Methodology adopted and the scope and limitations of the project. This chapter
enables the reader to understand the important points related to the project.
CHAPTER 2- INTRODUCTION TO BANKING INDUSTRY:
In this chapter a brief introduction about the banking industry is discussed. This
chapter also focuses on the banking system and structure in India.
CHAPTER 3- INTRODUCTION TO SYNDICATE BANK:
This chapter deals with the introduction about the Syndicate Bank, its formation and its mile
stones.
CHAPTER 4- DEPOSITS:
This chapter gives clear view about deposits and discusses about various types
of deposit schemes provided by Syndicate Bank.
CHAPTER 5- LOANS:
This chapter deals with loans and types of loans provided to the individual
customers by Syndicate Bank.
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CHAPTER 6- E-BANKING:
This chapter focuses on E-Banking and various types of delivery channels. It
also deals with Global debit card and Global credit card provided by Syndicate Bank.
CHAPTER 7- PRIMARY RESEARCH:
This chapter discusses about the primary research work done by using
questionnaire and analysis of results of questionnaire.
CHAPTER 8- COMPARISION OF VARIOUS PRODUCTS AND SERVICES OF
SYNDICATE BANK WITH OTHER BANKS:
This chapter deals with comparison of various products and services provided
by Syndicate Bank Vis a Vis ICICI Bank and Andhra Bank
CHAPTER 9- CONCLUSION:
The successful completion of project and all the retail products and services
provided by Syndicate bank are discussed briefly in this chapter.
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TABLE OF CONTENTS
COVER PAGE 2
CERTIFICATE 3
ACKNOWLEDGEMENT 4
AUTHORISATION 5
EXECUTIVE SUMMARY 6
CHAPTERISATION 8
CHAPTER 1- INTRODUCTION TO THE PROJECT 17
1.1 Retail Banking---Products and Services 17
1.2 Objectives of the project 18
1.3 Selection of the topic 18
1.4 Research Methodology 19
1.5 Scope and Limitations of the project 19
CHAPTER 2- BANKING INDUSTRY 20
2.1 Introduction to Banking Industry 20
2.2 History of banking in India. 21
2.3 Banking system in India 24
2.4 Banking structure in India 25
2.5 Functions of commercial banks 26
CHAPTER 3- INTRODUCTION TO SYNDICATE BANK 29
3.1 About Syndicate Bank 29
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3.2 Mergers with Syndicate Bank 30
3.3 Vision of the bank 31
3.4 Mission of the bank 31
3.5 Tagline of the bank 31
3.6 Logo of the bank 31
3.7 Milestones 32
CHAPTER 4- DEPOSITS 36
4.1 Current account 36
4.2 Savings bank account 37
4.2.1 Savings account 37
4.2.2 Synd Samanya 38
4.2.3 Premium Savings account 39
4.3 Term Deposits 40
4.3.1 Fixed Deposit 40
4.3.2 Recurring Deposit 42
4.3.3 Seniors Citizens Security Deposit 424.3.4 Synd Pigmy 1928 Deposit 42
4.3.5 Synd Pigmy 2006 Deposit 43
4.4 Statistics for Deposits 44
CHAPTER 5- LOANS 45
5.1 Synd Saral 47
5.1.1 Synd Saral(Salaried Class) 47
5.1.2 Synd Saral(Non Salaried Class) 48
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5.1.3 Synd Saral(All Types of Borrowers) 50
5.1.4 Synd Saral(Consumer Durables) 51
5.1.5 Synd Saral(Women) 52
5.1.6 Synd Saral(Agriculturists) 55
5.2 Synd Mortgage 57
5.3 Synd Nivas 59
5.4 Synd Vidya 62
5.5 Synd Vahan 65
5.6 Synd Senior 68
5.7 Synd Swarna 70
5.8 Statistics for Loans 72
CHAPTER 6- E BANKING 74
6.1 Core Banking Solutions 74
6.2 Delivery Channels 75
6.2.1 Automated Teller Machines 76
6.2.2 Internet Banking 776.2.3 Tele Banking 78
6.3 Global Cards 79
6.3.1 Syndicate Global Credit Card 79
6.3.2 Syndicate Global Debit Card 81
CHAPTER 7- PRIMARY RESEARCH 84
7.1 Questionnaire and its Analysis 84
7.2 Suggestions 89
CHAPTER 8- DATA FINDINGS AND ITS ANALYSIS 90
8.1 Comparison of Deposits of Syndicate Bank Vis-à-vis 91
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ICICI Bank and Andhra Bank for Fiscal Year
2010-2011 and its analysis
8.2 Comparison of Loans of Syndicate Bank Vis-à-vis 93
ICICI Bank and Andhra Bank for Fiscal Year
2010-2011 and its analysis
8.3 Comparison of ATMs of Syndicate Bank Vis-à-vis 93
ICICI Bank and Andhra Bank for Fiscal Year
2010-2011 and its analysis
8.4 Comparison of Total Business of Syndicate Bank Vis-à-vis 94
Other Banks for Fiscal Year 2010-2011 and its analysis
8.5 Comparison of Total Deposits of Syndicate Bank Vis-à-vis 95
Other Banks for Fiscal Year 2010-2011 and its analysis
8.6 Comparison of Total Advances of Syndicate Bank Vis-à-vis 97
Other Banks for Fiscal Year 2010-2011 and its analysis
8.7 Comparison of Total Advances of Syndicate Bank Vis-à-vis 99
Other Banks for Fiscal Year 2010-2011 and its analysis
CHAPTER 9- CONCLUSION 101
ANNEXURE-1 QUESTIONNAIRE 102
BIBLIOGRAPHY 103
GLOSSARY 104
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TABLE OF ILLUSTRATIONS
CHAPTER
NO
CONTENTS FIG
NO
TABLE
NO
PAGE
NO2 BANKING STRUCTURE IN INDIA 2.1 25
2 FUNCTIONS OF COMMERCIAL BANKS 2.2 26
4 SECTOR WISE DEPOSITS FOR YEAR 2010-
2011
4.1 44
4 PICTORIAL REPRESENTATION OF
DEPOSITS
4.1 44
5 SERVICE CHARGES FOR SYND
SARAL(AGRICULTURISTS)
5.1 56
5 RATE OF INTERESTS FOR SYND NIVAS 5.2 61
5 QUANTAM OF LOANS FOR SYND SENIOR 5.3 68
5 SECTOR WISE REPRESENTATION OF
LOANS FOR YEAR 2010-2011
5.4 72
5 PICTORIAL REPRESENTATION OF LOANS
FOR YEAR 2010-2011
5.1 72
5 SECTOR WISE REPRESENTATION OF
LOANS FOR YEAR 2009-2010
5.5 72
5 SECTOR WISE REPRESENTATION OF
LOANS FOR YEAR 2008-2009
5.6 73
5 COMPARISION OF LOANS FOR YEARS
ENDED ON MARRCH 31-2009,2010,2011
5.2 73
6 ACCEPTANCE OF GLOBAL CREDIT
CARD
6.1 79
6 ELIGIBILITY CRITERIA FOR GLOBAL
CREDIT CARD
6.2 80
6 ACCEPTANCE OF GLOBAL DEBIT CARD 6.3 81
6 USAGE LIMITS FOR GLOBAL DEBIT CARD 6.4 82
7 WHICH BANK DO THEY HAVE ACCOUNTS 7.1 84
7 RECALL OF PUBLIC SECTOR BANKS 72 85
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7 WHETHER PEOPLE HEARD OF
SYNDICATE BANK
7.3 85
7 IMPORTANT FEATURE THAT ATTRACTS
CUSTOMERS
7.4 86
7 CUSTOMERS USE INTERNET BANKINGAND VISIT BRANCH
7.5 86
7 RESPONDENT IS AWARE OF SYNDICATE
BANK’S GLOBAL DEBIT AND CREDIT
CARDS
7.6 87
7 FEATURES THAT CUSTOMERS LOOK INTO
WHILE THEY APPROACH FOR LOAN
7.7 87
7 CUSTOMERS PREFER N.S.C OR F.D IN
BANK
7.8 88
8 COMPARISION OF DEPOSITS OF
SYNDICATE BANK VIS-À-VIS ICICI BANK
AND ANDHRA BANK FOR FISCAL YEAR
2010-2011
8.1 90
8 PICTORIAL REPRESENTATION OF
COMPARISION OF DEPOSITS
8.1 90
8 COMPARISION OF LOANS OF SYNDICATE
BANK VIS-À-VIS ICICI BANK AND ANDHRA
BANK FOR FISCAL YEAR 2010-2011
8.2 91
8 PICTORIAL REPRESENTATION OF
COMPARISION OF LOANS
8.2 92
8 COMPARISION OF NUMBER OF ATM’S OF
SYNDICATE BANK VIS-À-VIS ICICI BANK
AND ANDHRA BANK FOR FISCAL YEAR
2010-2011
8.3 93
8 PICTORIAL REPRESENTATION OF
NUMBER OF ATM’S
8.3 93
8 COMPARISION OF TOTAL BUSINESS OF
SYNDICATE BANK VIS-À-VIS OTHER
BANKS FOR FISCAL YEAR 2010-2011
8.4 94
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8 PICTORIAL REPRESENTATION OF TOTAL
BUSINESS
8.4 94
8 COMPARISION OF TOTAL DEPOSITS OF
SYNDICATE BANK VIS-À-VIS OTHER
BANKS FOR FISCAL YEAR 2010-2011
8.5 95
8 PICTORIAL REPRESENTATION OF TOTAL
DEPOSITS
8.5.1
8.5.2
95
96
8 COMPARISION OF TOTAL ADVANCES OF
SYNDICATE BANK VIS-À-VIS OTHER
BANKS FOR FISCAL YEAR 2010-2011
8.6 97
8 PICTORIAL REPRESENTATION OF TOTAL
RETAIL ADVANCES
8.6.1
8.6.2
97
98
8 COMPARISION OF TOTAL ADVANCES OF
SYNDICATE BANK VIS-À-VIS OTHER
BANKS FOR FISCAL YEAR 2010-2011
8.7 99
8 PICTORIAL REPRESENTATION OF TOTAL
RETAIL ADVANCES
8.7.1
8.7.2
99
100
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CHAPTER 1
INTRODUCTION TO THE PROJECT
1.1 RETAIL BANKING -----PRODUCTS AND SERVICES
A bank is a financial institution which deals with deposit and credit. It accepts deposits
from individuals, firms and companies, who have surplus of funds, at a lower interest rate and
lends it to the needy individuals, firms and companies at a higher interest rate.
The Products offered by the bank may be broadly classified into two categories based on
whether they are provided to individual customers or corporates. Products provided to individual
customers are called Retail Products.
Retail Banking is typical mass-market banking in which individual customers use local
branches of larger commercial banks. Services offered include savings and checking accounts,
mortgages, personal loans, debit/credit cards and deposits. Retail banking aims to be the one-stop
shop for as many financial services as possible on behalf of retail clients.
The main objective of the project is to study various products and services provided to
individuals by Syndicate Bank. Retail banking products and services provided by Syndicate bank
to individual customers includes loans, deposits, E-Banking, insurance related services, and
pension related services so on. Loans may be classified as personal, vehicle, housing, education,
gold etc…..Deposits may related to savings or current account. Deposits may be for different
terms. Different services such as Internet Banking, Syndicate Global Credit and Debit cards, Tele
Banking are studied. Study of above products and services provided to individuals pertains to
retail banking. The other objective of project is to compare various retail products provided by
Syndicate Bank with other public and private sector banks.
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1.2 OBJECTIVES OF THE PROJECT
1. To study the features of retail products of the bank namely deposits, loans, advances and other
remittance products.
2. To compare salient features of retail banking products of Syndicate Bank vis-a-vis other public
and private sector banks
3. To study the recall level of Syndicate Bank’s brand and its products and services.
4. To make suggestions if any based on above study
5. To find out the scope for further study/research on above topic.
1.3 SELECTION OF TOPIC
Banks provide various types of products and services which are useful to individual
customers as well as corporates. Products offered to individual customers are called retail
products and these include loans, deposits etc…By studying these products and services and
analyzing the responses of individual customers, the perception of customers on these products
can be known.
On the other hand, though corporate lending is powerful, risk involved in this type of lending is high and margin is less when compared to retail lending. In retail lending risk is
diversified as lending is done to different customers. By analyzing the behavior of different
customers any changes that are to be made in policies of management can be found out and any
suggestions required can be made.
By comparing products of Syndicate Bank with other products of other banks, the
position of bank can be known and required improvements can be made.
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1.4 METHODOLOGY
The study is primarily based on secondary data. However with a view to include personal
inputs a questionnaire has been administered personally to 33 respondents using simple random
sampling method.
SOURCES OF DATA:
Primary data: Structured Non-Disguised Questionnaire
Secondary data: Internet, Study Material available at bank,
and discussions with various bank officials.
1.5 SCOPE AND LIMITATIONS OF THE PROJECT
SCOPE:
1. The study was conducted under guidance of qualified professionals
2. Working at corporate level helped me to achieve fruitful experience.
3. Retail products such as Loans, Deposits, E-Banking are studied
4. Salient features of retail products of Syndicate Bank with other banks can be compared
LIMITATIONS:
1. Some of the data/bank records, being vital and sensitive, are not accessible.
2. Availability of time was other limitation. Time available to study different retail
products is very less.
3. The Study is conducted and concluded considering the prevailing condition, which
may be subjected to change in future.
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CHAPTER 2
BANKING INDUSTRY
2.1 INTRODUCTION TO BANKING INDUSTRY
A Bank is an establishment authorised by government to accept deposits, pay interest,
clear cheques make loans act as an intermediary in financial transactions and provides other
financial services to customers who may individuals or corporates. Banks act as intermediary
between people having surplus money and those requiring money for business activities.
Banks have played a critical role in the economic development of some developed
countries such as Japan and Germany and most of the emerging economies including India.
Banks today are important not just from the point of view of economic growth, but also for
financial stability.
In emerging economies, banks are special for three important reasons. First, they take a
leading role in developing other financial intermediaries and markets. Second, due to the absence
of well-developed equity and bond markets, the corporate sector depends heavily on banks to
meet its financing needs. Finally, in emerging markets such as India, banks cater to the needs of
a vast number of savers from the household sectors, who prefer assured income, liquidity and
safety of funds, because of their inadequate capacity to manage financial risks.
Forms of banking have changed over the years and evolved with the needs of the
economy. The transformation of the banking system has been brought about by deregulation,
technological innovation and globalization.
While banks have been expanding into areas which were traditionally out of bounds for
them, non-bank intermediaries have begun to perform many of the functions of banks. Banks
thus compete not only among themselves, but also with nonbank financial intermediaries, and
over the years, this competition has grown in intensity.
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2.2 HISTORY OF BANKING IN INDIA
DEFINITION:
Banking is defined as accepting for the purpose of lending or investment of deposits of
money received from the public, repayable on demand or otherwise and withdrawable by
cheque, draft, order or otherwise.
Bank is a lawful organisation which accepts deposits that can be withdrawn on demand. It
also lends money to individuals and business houses that need it. Banks encourage savings
habit among people and thereby make funds available for productive purpose.
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
In India though there is presence of unorganized sector of money market comprising of
money lenders organised sector such as banks have grown significantly in recent times. Today
there are large numbers of public sector and private sector banks in India.
For the past three decades India's banking system has several outstanding achievements to
its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans
or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reasons of India's growth process.
The first bank in India, though conservative, was established in 1786. From 1786 till today,
the journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:
Early phase from 1786 to 1969 of Indian BanksNationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
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PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913
Bank of India, Central Bank of India, Indian Bank and Bank of Mysore were set up.Reserve
Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India came up
with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal departmentwas comparatively safer. Moreover, funds were largely given to traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale
specially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent
of RBI and to handle banking transactions of the Union and State Governments all over the
country.
Seven banks forming subsidiary of State Bank of India were nationalised in 1960 on 19th
July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalised.
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Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.
The following are the steps taken by the Government of India to Regulate Banking Institutions in
the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalisation of State Bank of India.
1959: Nationalisation of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalisation of 14 major banks.
1971: Creation of credit guarantee corporation.1975: Creation of regional rural banks.
1980: Nationalisation of seven banks with deposits over 200 crore.
PHASE III:
This Phase has introduced many more products and facilities in banking sector in its
reform measure.In1991 under chairmanship of M.Narshimham, a committee was set up by his
name which worked for liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilienceThis is all due to a flexible
exchange rate regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange exposure.
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2.3 BANKING SYSTEM IN INDIA
Banks are the financial backbone of any country’s economy. Without a sound and
effective banking system, India cannot have a healthy economy. A bank is a financial
institution which deals with deposit and credit. It accepts deposits from individuals, firms and
companies, who have surplus of funds, at a lower interest rate and lends it to the needy
individuals, firms and companies at a higher interest rate. The disparity between the
borrowing rate and lending rate forms the sources of profit for the banks.
Banks facilitates business transactions through receipts and payments by cheques
instead of currency. Banks help in national development by providing credit to farmers, small
scale industries, self employed people and large business houses which lead to balanced
economic development in the country.
For the past three decades, India’s banking system has several outstanding
achievements to its credit. The Banks are no longer confined only to metropolitans or
cosmopolitans. In fact, Indian banks have reached even to the remote corners of the country.
This is one of the main reasons of India’s growth process.
Not long ago, an account holder has to wait for hours at the bank counters to deposit or
to withdraw his own money. Today, he can do so in few minutes in an ATM. In addition to
that, core banking has facilitated the customers to operate their accounts in any nearby branch
without any inconvenience.
Many new services like Mobile banking, E-banking etc have given a new dimension to
the banking industry by making it more customers oriented.
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2.4 BANKING STRUCTURE IN INDIA
PICTORIAL REPRESENTATION OF BANKING STRUCTURE IN INDIA(as on 31st March 2009)
FIG NO 2.1
BANKS IN INDIA:
Banks in India comprise commercial banks and co-operative banks. Commercial banks
form the bedrock of the Indian financial system, currently accounting for more than three-fourths
RESERVE BANK OF INDIA
(CENTRAL BANK AND SUPREME
MONETARY AUTHORITY)
NATIONALISED
BANKS (19)
S.B.I AND ITS
ASSOCIATES (8)
NEW
PRIVATE
SECTOR
BANKS
(7)
OLD
PRIVATE
SECTOR
BANKS
(17)
REGIONAL
RURAL
BANKS
(96)
PUBLIC
SECTOR
BANKS
(27)
FOREIGN
BANKS
(32)
PRIVATE
SECTOR
BANKS
(24)
RURAL
COOPERATIVE
BANKS (109497)
URBAN
COOPERATIVE
BANKS (1813)
COOPERATIVE
BANKS 109310
COMMERCIAL
BANKS 179
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of all financial institutions' assets. CBs are present throughout India, and their branches, having
grown more than four-fold in the last 40 years now number more than 80,500 across the country.
BANKING REGULATOR:
The Reserve Bank of India (RBI) is the central banking and monetary authority of India,
and also acts as the regulator and supervisor of commercial banks.
2.5 FUNCTIONS OF COMMERCIAL BANKS
Commercial Banks are banking institutions that accept deposits and grant short term and long
term loans to individual customers and business enterprises.
The main functions of a commercial bank can be segregated into three main areas: (i)
Payment System (ii) Financial Intermediation (iii) Financial Services.
FIG 2.2
FUNCTIONS OF COMMERCIAL BANKS
FINANCIAL
SERVICES
PAYMENT
SYSTEM
FINANCIAL
INTERMEDIATION
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PAYMENT SYSTEM:
Banks are at the core of the payments system in an economy. A payment refers to the
means by which financial transactions are settled. A fundamental method by which banks help in
settling the financial transaction process is by issuing and paying cheques issued on behalf of
customers. Further, in modern banking, the payments system also involves electronic banking,
wire transfers, settlement of credit card transactions, etc. In all such transactions, banks play a
critical role.
FINANCIAL INTERMEDIATION:
The second principal function of a bank is to take different types of deposits from
customers and then lend these funds to borrowers, in other words, financial intermediation. In
financial terms, bank deposits represent the banks' liabilities, while loans disbursed, and
investments made by banks are their assets. Bank deposits serve the useful purpose of addressing
the needs of depositors, who want to ensure liquidity, safety as well as returns in the form of
interest. On the other hand, bank loans and investments made by banks play an important
function in channeling funds into profitable as well as socially productive uses.
FINANCIAL SERVICES:
In addition to acting as financial intermediaries, banks today are increasingly involved
with offering customers a wide variety of financial services including investment banking,
insurance-related services, government-related business, foreign exchange businesses, wealth
management services, etc. Income from providing such services improves a bank's profitability.
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Briefly the functions of commercial banks are
Accepting deposits and granting loans and advances
Issuing letters of credit, travellers’ cheque etc…
Providing customers with the facilities of foreign exchange dealings
Transferring money from one account to other; from one branch to another by
means of cheque, demand draft, internet banking and so on
Standing guarantee on behalf of customers, for making payment for purchase of
goods, machinery, vehicles etc…
Providing information on credit worthiness of customers
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CHAPTER 3
INTRODUCTION TO SYNDICATE BANK
3.1 ABOUT SYNDICATE BANK
Founded in 1925 Syndicate Bank India is one of the major public sector banks in
Southern India. It is headquartered in Manipal, Karnataka.
Syndicate Bank was founded in 1925. The Bank started its journey at Udupi in Coastal
Karnataka. At the time of its inception, the name of bank was Canara Industrial and Banking
Syndicate Limited. The founders of Syndicate bank were Vaman Srinivas Kudva, Upendra
Ananth Pai, and Dr T.M.A Pai. Their objective was to extend financial assistance to the local
weavers who were crippled by crisis in the handloom industry through mobilizing small savings
from the community. The Bank started operating with capital of only Rs 8,000. The Bank is one
of the oldest and premier commercial banks in India.
The Bank was renamed as Syndicate Bank limited in 1964 and its headquarters are
moved to Manipal.
Syndicate Bank was nationalised in 1969.Since that time the bank has made significant
progress in the Indian commercial banking sector. With the glorious history of high quality
customer services spanning more than 80 years, Syndicate Bank has built a strong clientele
comprising both retail and institutional clients. The Bank is first in India to introduce the Pigmy
deposit scheme where the agents of the bank visit door to door receiving deposits. The Bank has
currently more than 2000 branches and most of the branches are migrated to Core banking
Solutions.
The bank offers a wide variety of products and services comprising finance and
insurance, corporate banking, consumer banking, private equity, asset management, investment
management, credit cards and mortgages.
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The Bank is listed on following stock exchanges:
1) National Stock Exchange
2) Bombay Stock Exchange
3) Mangalore Stock Exchange
4) Bangalore Stock Exchange
3.2 MERGERS WITH SYNDICATE BANK
The following are the two major banks that have merged with Syndicate bank
1) Southern India Apex Bank Limited
2) Maharashtra Apex Bank Limited
Till date 20 banks have merged with Syndicate Bank.
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 centres 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 Bank's 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 ambitious technology plan called Centralised Banking Solution (CBS) whereby 500
of our strategic branches with their ATMs are being networked nationwide over a 4 year
period. The Bank is pioneer among Public Sector Banks on launching CBS. Syndicate Bank has
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already achieved CBS implementation among all its branches. Thus, the bank is 100% CBS
enabled.
3.3 VISION
Consolidating position as a premier public sector bank with increased global outreach emerging
as a strong vibrant responsive competitive bank embracing the state of art technology harnessing
human potential and effectively participating in the process of nation building serving its
constituents and stakeholders as a Faithfully and Friendly partner.
3.4 MISSION
To achieve global deposits on low cost resources by strategic initiatives including branch
expansion, aggressive marketing and active involvement of everyone.
3.5 TAGLINE
Faithful and Friendly is the tagline of Syndicate Bank.
3.6 LOGO
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3.7 MILESTONES
1925:
On 10.11.1925, the business of the Bank commenced in Udupi with the name "Canara Industrial
and Banking Syndicate Ltd.," a joint Stock Company with just one employee.
1928:
First branch of the Bank opened at Brahmavar in Dakshina Kannada District.
1937:
Bank became a member of the Clearing House for the first time at Bombay.
1946:
29 branches opened in a single day in rural areas.
1953:
Took over the assets and liabilities of 2 Local Banks viz. Maharashtra Apex Bank Ltd. and
Southern India Apex Bank Ltd. 20 Banks merged with the Bank during the period 1953-1964.
1957:
100th branch opened at Ilkal in Karnataka.
1962:
Entered Foreign Exchange business by opening Foreign Exchange Department at Bombay
1963:
Name of the Bank changed from "Canara Industrial & Banking Syndicate Ltd." to "Syndicate
Bank Limited". Head Office was shifted to Manipal on 19.4.1964.
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1966:
Economic Research Department set up. One of the first few Banks to emphasise on research in
Banking even before nationalisation
1969:
Bank had 306 branches at the time of nationalisation of which 66% were in Rural and Semi
Urban centres.
Opened a branch at Port Blair in Andaman and Nicobar islands
1970:
First Staff Training College started at Head Office
1971:
First specialised branch in Foreign Exchange opened at Delhi.
1972:
Opened a branch at Lakshadweep islands
1976:
First overseas branch opened at London on 17.8.76.
1983:
Took up management of Al Shabei Finance and Exchange Co. in Doha
1984:
1000th branch opened at Delhi Hauz Khas
1989:
1500th branch opened at Kanakumbi
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1991:
First Specialised Industrial Finance Branch opened at Mumbai.
1995:
First Specialised Housing Finance Branch opened at Mangalore
1999:
Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders
2000:
First Specialised Capital Market Services branch opened at Mumbai
2001:
First branch under CBS (Core Banking Solution) started operation at Bangalore.
2002:
Centralised Banking Solution under the brand name "Syndicate-e-banking" launched at Delhi,
Mumbai, Bangalore and Manipal.
2003:
Bank enters into MOU with Bajaj Allianz for distribution of Life Insurance products.
2004:
Utility bill payment services through Internet banking introduced.
Introduced On-line reservation of Railway Tickets through Indian Railway Catering & Tourism
Corporation Ltd. (IRCTC) for Internet banking customers of our Bank
Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of Rs.40
through Book building route Bank collected Rs.250 Crore and the issue was oversubscribed by
29.275 times.
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2005:
Amalgamation of 4 Regional Rural Banks of Karnataka to form Karnataka Vikas Grameena
Bank with Head Office at Dharwad
2006:
500th Branch of Syndicate Bank in Karnataka opened at Navnagar, Bagalkot.
2000th Branch of Syndicate Bank opened at Tondiarpet, Chennai on 23.03.2006.
Inauguration of SyndBank Services Limited, the 1st BPO outfit of a Nationalised Bank, a wholly
owned subsidiary of Syndicate Bank & 525th CBS Branch by Honourable Union Minister of
Finance, Sri P Chidambaram on 24.03.2006 at Bangalore.
2006th Branch of Syndicate Bank opened at Gangtok, Sikkim on 27.03.2006
First Branch opened in Arunachal Pradesh at Ita Nagar on 16th October 2006
2007:
First Branch opened in Nagaland at Dimapur on 17.03.2007
First Branch opened in Mizoram in Aizawl on 29.03.2007
2008:
First Branch opened in Tripura at Agarthala on 11.01.2008
Branch network expanded to all States and UTs except Manipur & Daman Diu
2009-10:
The Bank opened 3 new Regional Offices at Moradabad, Jaipur and Guwahati for better
administrative cover over branches in the respective jurisdictions.
2010-11:
The Bank opened 135 branches under the Financial Inclusion programme of the Govt. of India
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CHAPTER-4
DEPOSITS
A deposit account is a current account, savings account, or other type of bank account, at
a banking institution that allows money to be deposited and withdrawn by the account holder.
These transactions are recorded on the bank's books and the resulting balance is recorded as
a liability for the bank and represent the amount owed by the bank to the customer. Some banks
charge a fee for this service, while others may pay the customer interest on the funds deposited.
Traditionally banks in India have three types of deposit accounts, namely Current
Accounts, Saving Banking Accounts and Term Deposits.
4.1 CURRENT ACCOUNT
Current accounts are used mainly by businessmen and are not generally used for the
purpose of investment. These deposits are the most liquid deposits and there are no limits for
number of transactions or the amount of transactions in a day. Most of the current account are
firm / company accounts. Cheque book facility is provided and the account holder can deposit
all types of the cheques and drafts in their name or endorsed in their favour by third parties. No
interest is paid by banks on these accounts. On the other hand, banks charge service charges, on
such accounts.
Current Accounts can be opened by individuals, partnership firms, private and public
limited companies, HUFs/specified associates, societies, trusts, etc.
The Bank requires a satisfactory introduction of the person/s opening the account by a
person acceptable to the Bank.
Minimum balance as stipulated from time to time will be required to be maintained.No interest is paid on credit balances kept in current account.
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4.2 SAVINGS BANK ACCOUNT
Savings deposits / accounts are one of the most popular deposits for individual
accounts. These accounts not only provide cheque facility but also have lot of flexibility for
deposits and withdrawal of funds from the account. Most of the banks have rules for the
maximum number of withdrawals in a period and the maximum amount of withdrawal, but
hardly any bank enforces these. However, banks have every right to enforce such restrictions if
it is felt that the account is being misused as a current account. The interest on these accounts at
present is regulated by Reserve Bank of India.
4.2.1 SAVINGS ACCOUNT
Savings accounts are designed to help the individuals (personal customers) to inculcate
the habit of saving money and to meet their future requirement of money. Amounts can
be deposited/ withdrawn from these accounts by way of cheques / withdrawal slips. It
helps the customers to keep minimum cash at home besides earning interest.
These accounts can be opened by eligible person/s and certain organisations / agencies
(as approved by the Reserve Bank of India (RBI)
The Bank requires a satisfactory introduction of the person/s opening the account by a
person acceptable to the Bank.
The Bank will provide to the prospective customers details of the documents required for
identification of the person/s opening the account in addition to a satisfactory
introduction.
The account holder is required to maintain certain minimum balance in the account, as
specified by the Bank from time to time according to the population category of the
branch concerned and also depending on, whether account holder wants to avail the
cheque book facility or not.
Interest at 4% p.a. is presently paid on half yearly basis, calculated on a daily product
basis, with a minimum of `1/-.
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4.2.2 SYND SAMANYA
ELIGIBILITY:
All individuals are eligible to open Synd Samanya account.
MINIMUM BALANCE:
Minimum balance to be maintained in Synd Samanya account is zero.
i.e. Synd Samanya account holder need not maintain any balance in his account.
RATE OF INTEREST:
Rate of interest is 4%
CASH WITHDRAWAL:
50 transactions per year can be performed by the customer at branch counter.
Service charge of Rs.10/- per transaction shall be levied if the customer exceeds the stipulated
number of transactions in his account. There is no limit on number of ATM transactions.
CHEQUE BOOK:
Cheque book will be made available if minimum balance is maintained according to
Savings Bank account norms.
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4.2.3 PREMIUM SAVINGS ACCOUNT
The Bank has introduced a Premium Savings Account at e-banking branches that combines full
safety, easy liquidity and highest possible interest.
The salient features of the scheme are as under
A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures that
while the customer's money earns solid interest as a fixed deposit, it turns liquid to meet
his/her urgent needs. That too at no extra cost.
Average monthly balance of Rs.10000/-to be maintained in the Premium Savings
Account.
Balance available in the account in excess of Rs.10000/-on any day gets automatically
swept out into a fixed deposit for 180 days in units of Rs.1000/-.
In the event of shortfall in SB for meeting customer’s clearing cheques or for other urgent
needs, the fixed deposit is swept back into the Premium Savings Account in required
number of units of Rs. 1000/- free of cost.
No penalty is charged for breaking the fixed deposit prematurely.
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4.3 TERM DEPOSIT
A deposit held at a financial institution that has a fixed term. These are generally short-term
with maturities ranging anywhere from a month to a few years. When a term deposit is
purchased, the lender (the customer) understands that the money can only be withdrawn after the
term has ended or by giving a predetermined number of days notice.
Term deposits are an extremely safe investment and are therefore very appealing to
conservative, low-risk investors. By having the money tied up you'll generally get a higher rate
with a term deposit compared with a demand deposit.
4.3.1 FIXED DEPOSIT
Fixed Deposit is a regular interest earning scheme. It is a flexible and convenient deposit
scheme which ensures that your money never remains idle. Even very small amounts earn
interest for very short periods. Yes. You can deposit an amount of just Rs.1000/- for a period as
short as 15 days and make it grow.
Salient features of the scheme are:
Minimum deposit Rs.1000/-
Deposits accepted for periods ranging from 15 days to 120 months.
There is an option available for receiving monthly interest at discounted rates or quarterly
interest.
Premature withdrawal of deposit is permitted any time subject to payment of prescribed
penalty.
Loans available up to a maximum of 95% of the deposit amount depending on the length
of the unexpired period of the deposit.
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4.3.2 RECURRING DEPOSIT
It is an ideal scheme of monthly savings for salaried people, businessmen, professionals
etc. Small amounts saved every month for a long period come in handy to meet large financial
commitments in the future. These kinds of deposits are most suitable for people who do not have
lump sum amount of savings, but are ready to save a small amount every month. Normally, such
deposits earn interest on the amount already deposited
Salient features of the scheme are:
Minimum deposit is Rs.100/-per month.
Period of deposit ranges from 12 months to 10 years.
Delayed payments of installments are accepted with nominal penalty.
Monthly minimum balance in the account earns compound interest every quarter.
No tax is deducted from the interest on the deposit.
Loans up to maximum of 95% of the deposit amount available depending on the length of
the unexpired period of the deposit.
4.3.3 SENIOR CITIZENS’ SECURITY DEPOSIT
It is a highly beneficial value added scheme, specifically designed for the benefit of our
respected Senior Citizens (above 60 years of age), this deposit scheme is truly special in
character, carrying an interest of 0.5% over and above the normal rate besides offering numerous
value additions.
Salient features of the scheme are:
Minimum amount of deposit is Rs.1000/-
Period of Deposits is 12 to 120 months.
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Interest on the deposit is 0.5% above the normal rate.
Interest payable at monthly (discounted rates) or quarterly intervals.
Premature withdrawal of deposit is permitted any time without levy of penalty. Accounts
closed before completion of 12 months are not eligible for additional interest of 0.5%.
Exemption from maintaining prescribed minimum balance in savings Bank account.
Free Remittance Facility to any of our branches up to a specified limit.
4.3.4 SYNDPIGMY 1928 DEPOSIT
Little drops of water make a mighty ocean .This deposit scheme suits the needs of everyone viz. businessmen, professionals, wage earners, teachers, salaried personnel, traders,
housewives etc. Customers can save money with the Bank regularly depending on your
convenience and they need not visit the Bank for doing so. The Bank's authorised Agent collects
your savings at your doorsteps at regular intervals. Their money silently grows over 63 months
into a lump sum for meeting your future commitments e.g. daughter's marriage, children's
education, family functions, house purchase etc.
Salient features of the scheme are:
Period of the scheme is 63 months.
Amount as low as Re.1/- per day can be saved daily / weekly / monthly.
No penalty even if depositor is unable to pay installments regularly.
Deposit account can be closed prematurely subject to certain conditions.
Loans up to a maximum of 75% of the balance in the Pigmy account available.
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4.3.5 SYND PIGMY 2006 DEPOSIT
This scheme is comparable to the Bank’s Pigmy (1928) Deposit Scheme, but with added
features for increased customer compatibility is being launched from 02.10.2006.
The Bank’s Authorized agent will collect your savings at your doorsteps at daily or less
frequent intervals in tune with your convenience. Any day after 12 months of opening the
Deposit, the amount equal to or exceeding Rs. 5000/- in the Deposit Account, can be transferred
to a term deposit account at the ruling interest rate subject to the terms of the Scheme, listed
below:
1. Minimum Contribution per occasion : Rs.5/-
2. Period of Deposit : 72 months3. Premature refund :
i) before 24 months: Permitted with penalty and without interest.
ii) 24 months & above : Interest on deposit will be paid at
rates ranging from 2 % to 5% (as fixed by the Bank
from time to time), depending upon the period for which
the deposit has remained with Bank.
4. Loan /Overdraft : Loan/OD available up to 75 % of the outstanding balance
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4.4 STATISTICS OF DEPOSITS
SECTOR WISE DEPOSITS FOR YEAR 2010-2011
DEPOSIT AMOUNT(Rs in Crore)
Current Account and Savings Account
(CASA)Deposit
41945
Term Deposit 135306
TABLE NO 4.1
PICTORIAL REPRESENTATION OF DEPOSITS
FIG NO 4.1
41945
135306
DEPOSIT AMOUNT(Rs in crore)
CASA
TERM
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CHAPTER 5
LOANS
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of
financial assets over time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called
the principal, from the lender, and is obligated to pay back or repay an equal amount of money to
the lender at a later time. Typically, the money is paid back in regular installments, or partial
repayments; in an annuity, each installment is the same amount.
The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan.
Acting as a provider of loans is one of the principal tasks for financial institutions. For
other institutions, issuing of debt contracts such as bonds is a typical source of funding.
TYPES OF LOANS
SECURED LOAN:
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property)
as collateral for the loan.
A subsidized loan is a loan that will not gain interest before you begin to pay it.
An unsubsidized loan is a loan that gains interest the day of disbursement.
A mortgage loan is a very common type of debt instrument, used by many individuals to
purchase housing. In this arrangement, the money is used to purchase the property. The financial
institution, however, is given security until the mortgage is paid off in full. If the
borrower defaults on the loan, the bank would have the legal right to repossess the house and sell
it, to recover sums owing to it.
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UNSECURED LOAN:
Unsecured loans are monetary loans that are not secured against the borrower's assets. These
may be available from financial institutions under many different marketing packages:
credit card debt
personal loans
bank overdrafts
credit facilities or lines of credit
The interest rates applicable to these different forms may vary depending on the lender and the
borrower.
DEMAND LOAN:
Demand loans are short term loans (typically no more than 180 days) that are a typical in
that they do not have fixed dates for repayment and carry a floating interest rate which varies
according to the prime rate. They can be "called" for repayment by the lending institution at any
time. Demand loans may be unsecured or secured.
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5.1 SYND SARAL
5.1.1 SYND SARAL (SALARIED CLASS)
PURPOSE:
To meet any genuine personal credit needs
FACILITY:
Demand loan (Maximum Tenure 60 Months for salaried and Non Salaried)
ODC----Maximum 2 Lakhs
TARGET GROUP:
Permanent employees of State/Central government/Public sector/Reputed Private Sector
Companies/Teachers/Professors/Pensioner
AMOUNT OF FINANCE:
Salaried class in service: Not exceeding 12 months Gross Salary
Salaried class Retired: Not exceeding 10 months Gross Pension
REQUIREMENTS:
Salary/Pension credited at branch level
Irrevocable letter from the employer
Irrevocable letter from the surety in case his salary is credited with Syndicate Bank.
SURETY:
3rd
party acceptable to the Sanctioning Authority
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INTEREST:
BR+4.75% where the salary is credited at the branch
CUTBACK:
Cut back not to exceed 50% of gross salary /60% in case of voluntary contributions like
LIC etc/70% in case Spouse has separate income from regular employment
And for pensioners it is 50%
INTEREST CONCESSION:
1% concession in applicable rate is available to employees of Government
Department/Public sector Undertaking/Corporations and Blue Chip Companies, where
there is tie up;
5.1.2 SYND SARAL (NON SALARIED CLASS)
PURPOSE:
To meet any genuine personal credit needs
FACILITY:
Demand Loan/Other Secured Loan --- Maximum Tenure 60 months
TARGET GROUP:
Professionals /Doctors/Engineers/Lawyer/CA’s and other non-salaried class etc…
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AMOUNT OF FINANCE:
If latest Income Tax Assessment Order is submitted 50% of Gross Annual Income if last
3 years Income Tax Assessment Orders are submitted.
If UREM is offered as security 60% of the value of the property
REQUIREMENTS:
Valid mortgage is to be created in case the applicant is unable to produce proof of
income.
Manager can assess the income in case no proof of income is produced
Post dated Cheques are accepted
SURETY:
3rd party acceptable to the Sanctioning Authority
INTEREST:
BR+ 4.75%
CUTBACK:
Cut back not to exceed 50% of gross salary
It should not exceed 60% in case of voluntary contributions like LIC etc
It should not exceed 70% in case Spouse has separate income from regular employment
And for pensioners it is 50%
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5.1.3 SYND SARAL (ALL TYPES OF BORROWERS)
PURPOSE:
To meet any genuine personal credit needs
FACILITY:
Demand Loan/Other Secured Loan --- Maximum Tenure 60 months
Secured Over Draft --- Renewable every 2 years
TARGET GROUP:
All types of borrowers offering National Savings Certificate/Life InsuranceCorporation/IVP/Kisan Vikas Patra/RBI bonds or UREM of property as security
AMOUNT OF FINANCE:
National Savings Certificate/Kisan Vikas Patra:80% of purchase price if completed 24
months & 65% of purchase price if completed 12 months but less than 24 months or
80% of purchase value in case of RBI relief bond or
80% of Standard Value of LIP
REQUIREMENTS:
The genuiness of the securities offered (National Savings Certificate/LIC/IVP/Kisan
Vikas Patra/RBI relief bonds) are verified.
Security should have completed the minimum lock in period.
SURETY:
3rd party acceptable to the Sanctioning Authority
INTEREST:
BR+4.75% for loans and overdrafts under above secured loans
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CUTBACK:
Cut back not to exceed 50% of gross salary
It should not exceed 60% in case of voluntary contributions like LIC etc
It should not exceed 70% in case Spouse has separate income from regular employment
And for pensioners it is 50%
5.1.4 SYND SARAL (CONSUMER DURABLES)
PURPOSE:
To purchase consumer durables
FACILITY:
Other Secured Loans
TENURE:
Not more than 60 Equated Monthly Installments
TARGET GROUP:
Salaried and Non-Salaried Class
REQUIREMENTS:
Salary is to be credited or undertaking letter from the employer is to be obtained.
Quotations for the items proposed to be purchased is to be submitted
Declaration for having purchased the items to be obtained
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QUANTUM LOAN CALCULATION:
Salaried class:80% of invoice or 10 Months Gross Salary whichever is less Maximum Rs
2 Lakh;
For a Pensioner-Maximum Rs 1 lakh
Non-Salaried:80% of the invoice or 50% of the gross annual income as per Income Tax
Assessment Order or Return filed.
RATE OF INTEREST:
BR+4.75%
SURETY:
3rd party acceptable to the Bank
CUTBACK:
Cut Back not to exceed 50% of gross salary
60% in case of voluntary contributions like LIC etc…
Cut back can go up to 70% in case Spouse has separate income from regular
employment.
Not to exceed 50% in case of pensioners
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5.1.5 SYND SARAL (WOMEN)
PURPOSE:
To meet any genuine personal credit needs
FACILITY:
Demand Loan
TENURE:
Tenure of the loan is 84 months
TARGET GROUP:
Women employees and self employed in the age group of 20 to 50
Salaried:
Permanent employees of State/Central Government/Public Sector/Reputed Private
Sector Companies/Teachers/Professors
Non-salaried class:
Professionals/Self Employed/ C A’s and other non-salaried class etc… including
House-Wife
REQUIREMENTS:
Salary/Pension credited at the branch level
Irrevocable letter from the employer to deduct and remit the installments
Irrevocable letter from surety in case his salary is credited with us
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QUANTUM OF FINANCE:
If salary is credited at the branch – Not exceeding 12 months Gross salary
If salary is not credited at branch-Not exceeding 10 months of Gross salary
If maintaining a Recurring Deposit account -10 months Recurring Deposit
contribution
If having a Savings Bank account – 6 months average monthly balance maintained
at the Savings Bank account
If professional and Self Employed- 50% of gross annual income
MAXIMUM/MINIMUM:
Minimum loan – Rs 10,000/-
Maximum loan- Rs 1,50,000/ -
SURETY:
Earning family member or a 3rd
party acceptable to the Sanctioning Authority
INTEREST:
BR+4.5%
CUT BACK:
Not to exceed 60% in case salary is not credited with us
70% in case salary is credited with us
75% if spouse has separate income from regular employment
SERVICE CHARGES:
Up to loan of 50,000/- nil
Above Rs 50,000/- Service Charge of Rs 100/- is to be collected
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5.1.6 SYNDSARAL (AGRICULTURISTS)
PURPOSE:
To meet any genuine credit requirements/purchase consumer durables like TV, Fridge,Washing Machine, Video /Audio Equipment etc…
FACILITY:
Demand Loans (for clean loans)/Other Secured Loans (for purchase of consumer
durables /vehicles)
ELIGIBILITY:
Agriculturists. Clean loans may be sanctioned to existing customers only who have
availed some facility with the bank and have mortgaged the property. For new clients, the facility
is to be extended only on secured basis.
QUANTUM:
Demand loan: 50% of average gross annual income or Rs 1.00 Lakh, whichever is less,
where proof of income from Revenue authorities is submitted. Where proof of income from
Revenue Authorities is not available , before sanctioning loan, Manager shall make a fair and
realistic assessment of the party’s income after getting necessary details and satisfy himself
about the income of the borrower , his repayment capacity etc… duly justifying his decision,
before sanctioning loan. In such event, quantum of loan is restricted 50% of the gross annual
income or Rs 0.25 lakh whichever is less.
Other Secured Loan: 80% of the consumer durable/vehicle to be purchased
or 50% of annual income or Rs 0.50 lakh whichever is less.
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REPAYMENT:
Not exceeding 3 years. The repayment may be fixed to coincide with the periodicity of
his income, viz .,monthly/quarterly/half-yearly/yearly
RATE OF INTEREST:
BR+4.75% for Demand Loans and BR+4.75% for Other Secured Loans (Compounded
monthly)
GUARANTEE:
Good third party guarantee acceptable to the Bank.
CUTBACK:
Not applicable.
SERVICE CHARGES:
For loans up to Rs 25,000/- Rs 100/-
Above Rs 25,000/- and up to Rs 2.00 lakhs Rs 2.50 per thousand or part thereof with a
minimum of Rs 250/-
TABLE NO 5.1
STATISTICS FOR SYND SARAL:
For Fiscal Year 2010-2011 loans under Synd Saral Scheme is 5326.08 Crores which
accounts for 5.46% of total loans give by Syndicate Bank.
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5.2 SYNDMORTGAGE
PURPOSE:
For any genuine business/personal credit
Needs including purpose of residential sites
FACILITY:
Other Secured Loans (Mortgage)
OUTLETS:
All branches to extend this facility. Clearance shall be obtained from RO.
TARGET GROUP:
Bonafide owners of residential or commercial property
ELIGIBILITY CRITERIA:
Salaried class, agriculturist and business community
FACILITY:
Other Secured Loans: Maximum of 50 Lakhs
QUANTUM OF FINANCE:
Salaried: 60 months gross salary including other incomes if any (proofs shall be
obtained); 60% cutback & undertaking letter from employer required.
Non Salaried: 5 times the annual income
< 5 Lakhs through holistic approach;
>5 Lakhs average of last 3 years income-cutback 45%
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REPAYMENT:
In equated installments not exceeding 7 years; installments can be fixed in quarterly, half
yearly, annually depending upon the income generation of the party
INTEREST:
BR+6.25%
GUARANTEE:
3rd
party acceptable to the Bank
OTHER TERMS AND CONDITIONS:
Margin: On house plots approved by Housing Boards/Development authorities is 25%;
other residential sites or commercial properties margin is 50%.
Annual inspection of property
Obtaining of 3rd party mortgage
Takeover of loan from others not permitted
STATISTICS:
For Fiscal Year 2010-2011 Loans given under Synd Mortgage Scheme is Rs 1473 crores
which accounts for 1.51% of total loans give by Syndicate Bank.
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5.3 SYND NIVAS
PURPOSE:
For construction/acquisition of a house/flat or for acquiring a site and building a house
thereon
For acquiring a new house or existing house not more than 20 years old.
For making extensions/additions to existing house (max. Rs 5 Lakhs).
Takeover of existing Housing loan from other banks/ financial institutions in the case of
salaried class are permitted.
During the Takeover higher loan may also be considered depending upon the case
Repair/renovation max Rs 1.5 Lakhs in Rural/Semi Urban and Rs 2 Lakhs in Urban/Metro
branches.
ELIGIBILITY:
Both Resident and Nonresident Indians are eligible.
RESIDENT:
Applicant should be a major and not more than 55 years of age.
Applicant must be employed in reputed Govt. /Public Sector/Private sector organisations.
Self-employed/business class having gainful employment in a profession or business for a
period of minimum period of 5 years.
Individuals not owning a house/flat at the place of work / business / profession having
sufficient and regular income.
For salaried class, applicant should have completed 5 years of service and the remaining
period of service left shall not be less than 5 years.
Loan to third house is not permitted.
NONRESIDENT
Having Indian passport and having regular employment to justify repaying capacity
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QUANTUM OF LOAN:
Lesser of the following is to be sanctioned as Housing Loan ensuring cutback:
1. The maximum eligibility based on the cost of the project is found out which is 75% of the
project cost.
2. The maximum eligibility based on the income is found out which is 72 months Gross
Salary.
3. The maximum amount of EMI available after other deductions and accordingly the
eligible loan amount with help of interest factor available in the EMI table is found out.
CUTBACK:
For Salaried class: 60% of the Gross Salary
For Non Salaried class: 60% (except Agriculturists)
SECURITY:
First mortgage of the site/house/flat to be constructed/acquired or as advised by the Legal
Adviser/Law Officer of the Bank.
Hypothecation of furniture & fixtures.
MARGIN: 25% of total project cost for construction/purchase of new flat or house up to 5 years old.
30% for acquiring house which is above 5 years old.
30% of the estimated cost of addition/extension/repairs/renovation.
PROCESSING CHARGES:
Rs.700/- per lakh with a minimum of Rs.1000/- at present. (Processing charges are subject to
change from time to time)
Documentation charges as applicable.
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REPAYMENT:
FOR ACQUIRING A HOUSE
Equated monthly installments with maximum repayment period of 25 years
In case of salaried persons, repayment period shall not extend beyond superannuation.
In case of non salaried persons the repayment shall not extend beyond age of 70 years.
FOR REPAIRS/RENOVATION
Maximum repayment period is 5 to 7 years.
RATES OF INTEREST:
AMOUNT AND TENOR INTEREST RATE
Up to Rs 20.00 Lakhs
a) Up to 10 years BR+0.25% 10.25%
b) Above 10 to 20 years BR+0.50% 10.50%
Above Rs.20 Lakhs
a) Up to Rs. 20.00 Lakhs BR+1.25% 11.25%
b) Above Rs. 20.00 Lakhs BR+1.75% 11.75%
TABLE NO 5.2
STATISTICS
For fiscal year 2010-2011 loans under Housing Loan portfolio stood at `8,120.01 crore as
at March 31, 2011 with a clientele base of 1, 65,818. It represents 8.33% of total loans given by
Syndicate Bank.
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5.4 SYNDVIDYA
EDUCATIONAL LOAN SCHEME FOR STUDIES WITH IN INDIA AND ABROAD
PURPOSE:
STUDIES WITHIN INDIA:
To meet cost of tuition /special fees, books, instruments, hostel lodging and boarding
expenses etc...
FOR STUDIES ABROAD:
Travel expenses along with other study expenses are eligible.
ELIGIBILITY:
Students those who have secured admission in any Indian or Foreign universities based
on merit.
COURSES ELIGIBLE:
STUDIES WITHIN INDIA:
Graduation courses: BA, B.Com., B.Sc., etc.
Post graduation courses: Masters Degree & Ph.D.
Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc.
Course like ICWA, CA, CFA etc.
Courses conducted by IIM, IIT, IISC, XLRI, NIFT etc.
Courses offered in India by reputed foreign universities.
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Other courses leading to Diploma/Degree etc., conducted by Colleges/Universities
approved by UGC/Govt./AICTE/AIBMS/ICMR etc.
STUDIES ABROAD:
Graduation: For job oriented professional / technical courses offered by reputed
universities.
Post Graduation: MCA, MBA, MS etc.
Courses conducted by CIMA-London, CPA in USA etc.
STUDENT ELIGIBILITY:
Any major student representing himself or a minor student represented by parent or
guardian, of Indian nationality.
Secured admission to professional / technical courses in India or abroad through entrance
test/ Merit based selection process.
QUANTUM OF FINANCE:
STUDIES IN INDIA - Maximum Rs.10.00 lakh
STUDIES ABROAD - Maximum Rs.20.00 lakh
MARGIN:
For studies within India or Abroad
Up to Rs.4 lakh: Nil
Above Rs 4 lakh: 5%
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SECURITY:
Up to Rs.4 lakh: No security.
Rs.4 lakh up to Rs.7.50 lakh: Collateral in form of guarantee acceptable to the Bank
Above Rs.7.50 lakh: 100% of the loan amount with suitable margin by way
of UREM /NSC etc…
RATE OF INTEREST:
Up to Rs 4.00 lakhs: BR+2.25%
Above Rs 4.00 lakhs: BR+2.75%
MAXIMUM REPAYMENT PERIOD:
In 60 to 84 installments ½ years after completion of education or 6 months after obtaining
the securing the employment whichever is earlier.
GUARANTORS:
Up to 4 lakhs: Parent /Guardian to join as surety
Above Rs 4 lakhs: Parents PLUS one more guarantor outside the family
STATISTICS:
For Fiscal Year 2010-2011 education loans given under Synd Vidya Scheme is Rs
1902.85 crores which accounts for 1.95% of total loans.
SPECIAL CONCESSIONS UNDER THE SCHEME:
All Students belonging to SC/ST category are eligible for concession of 0.50 per cent on
the applicable rates of interest and all girl students are eligible for concession of 0.50 per cent
on the applicable rates of interest.
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5.5 SYNDVAHAN
PURPOSE:
Purchase of New/second hand Four-wheeler, such as Car, Van, Jeep, etc.
Purchase of New two wheeler such as, Motorbikes, Scooter, etc.
NATURE OF FACILITY:
Secured Loan (OSL)
ELIGIBILITY:
FOR FOUR WHEELERS: Individuals having minimum annual income of Rs.2.00 lakh.
For determining eligibility, quantum of loan, the income of spouse, major children including
unmarried daughters, supporting the borrower financially, can be considered. The person/s
whose income is/are included for the above purpose shall join the transaction as additional
surety/ies. Agriculturists are eligible.
FOR TWO WHEELERS: Individuals having minimum annual income of Rs.0.50 lakh.
QUANTUM:
FOR FOUR WHEELER:
a) 95% of on-road price (inclusive of Insurance, Road Tax and Registration charges) of the
vehicle for new car and accessories (the cost of accessories is limited to a maximum of
Rs.10000/-) or three times the gross annual income, whichever is less.b) 70% of value of the Car (as valued by approved value) for 2nd hand car of not more than
5 years old or 3 times gross annual income or Rs.3.00 lakhs, whichever is less.
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FOR NEW TWO WHEELER:
a) 95% of on-road price (inclusive of Insurance, Road Tax and Registration charges) of the
new 2 wheeler and accessories (max. Rs.500/-) or 6 months gross salary, whichever is
less, with no Maximum ceiling.
b) Second hand two wheelers are not eligible for Bank finance.
CUTBACK:
Normally not to exceed 50% of gross salary
Not to exceed 60% in case of voluntary contributions like LIC etc…
Not to exceed 70% in case spouse has separate income from regular employment
Not to exceed 50% for pensioners
SECURITY:
Hypothecation of the vehicle to be purchased
SURETY:
Good 3rd
party acceptable to the bank
RATE OF INTEREST:
2 WHEELERS:
BR+3.75%
1% concession in applicable rate is available to employees of
govt.departments/PSU/Corporations and blue chip companies where there is tie up arrangement
or corporate sponsor the application and give irrevocable of undertaking.
4 WHEELERS:
BR+3.25%
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1% concession in applicable rate is available to employees of
govt.departments/PSU/Corporations and blue chip companies where there is tie up arrangement
or corporate sponsor the application and give irrevocable of undertaking.
REPAYMENT:
FOR NEW 4 WHEELERS:
84 Equated Monthly Installments
FOR OLD 4 WHEELERS:
48 Equated Monthly Installments
FOR 2 WHEELERS:
60 Equated Monthly Installments
TIE- UP WITH CAR MANUFACTURERS:
M/s Hyundai Motors India Ltd, M/s Maruti Suzuki, M/s International Car Manufacturers
Ltd, M/s Mahindra and Mahindra
STATISTICS:
For the Fiscal Year 2010-2011this portfolio registered a growth of 21.72 % during the
year ended 31.03.2011 with an outstanding of `983.46 crores at the year end.
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5.6 SYND SENIOR
An exclusive personal loan scheme for pensioners
PURPOSE:
Any bonafide personal / business credit requirement
ELIGIBILITY:
Pensioners whose pensions are being routed through accounts held with our Bank
QUANTUM:
Details of the quantum of loan that can be sanctioned based upon age profile of the borrower
are as follows:
Age Range Basis of Arriving at Quantum
Maximum permissible
loan Amount (` in
Lakh)
Up to 65 years 18 times the gross monthly pension 3.00
65 – 70 years 18 times the gross monthly pension 1.50
Over 70 years 5 months gross pension 0.50
TABLE NO 5.3
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SECURITY:
Unsecured
RATE OF INTEREST:Rate of Interest is Base Rate + 3.75%
NATURE OF FACILITY:
Demand Loan
SURETY:
No surety for loans up to 6 months gross monthly pension or Rs.50000/- whichever is lower
In all other cases the surety of a family member or that of a third party and surety should
have adequate means / income.
REPAYMENT:
In not more than 72 Equated Monthly installments
CUT BACK:
50% of income from verifiable sources
PROCESSING FEES:
For loans up to Rs 50,000/- -- No processing fees
For loans above Rs 50,000/- -- A flat processing charge of Rs 200/- per loan.
U.S.P’s:
Pensioners aged less than 65 years are also eligible
EMI: 72
No processing fee up to Rs 50,000/-
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5.7 SYND SWARNA
ELIGIBILITY:
Pledge of Jewels properly appraised, to customers who are properly introduced to the Bank.
CLASSIFICATION:
Jewel loan: Agriculturist, SSI and Small Business, Retail Traders etc… are classified as
Priority Sector Advances.
Others – Non Priority Sector
NATURE OF FACILITY:Term Loan / Secured Overdraft.
INSURANCE:
Required only if the borrower insists for, but at his cost
QUANTUM OF LOAN:
SCHEME 1:
22 ct. – Rs 1600 per gram
24 ct. /hallmarked Gold- Rs 1650 per gram
SCHEME 2:
22 ct. – Rs 1550 per gram
24 ct. /hallmarked Gold- Rs 1600 per gram
SCHEME 3:
22 ct. – Rs 1500 per gram
24 ct. /hallmarked Gold- Rs 1550 per gram
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RATE OF INTEREST:
SCHEME 1:
Base Rate+4.50% for agricultural purpose
SCHEME 2:
Base Rate+3.50% for agricultural purpose
SCHEME 3:
Base Rate+2.50%
REPAYMENT PERIOD:
SCHEME 1:
Up to 6 months
SCHEME 2:
More than 6 months up to 12 months
SCHEME 3:
More than 12 months up to 24 months
PROCESSING CHARGES:
Rs 1.50 per thousand with a minimum of Rs 150/- for all the schemes
STATISTICS:
For Fiscal Year 2010-2011 loans given under Synd Swarna Scheme is Rs 1934.55 crores
which accounts for 1.98% of total loans.
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5.8 STATISTICS FOR LOANS
SECTOR WISE REPRESENTATION OF LOANS FOR YEAR 2010-2011DESCRIPTION AMOUNT(Rs in crore ) PERCENTAGE OF TOTAL RETAIL LOANS
HOUSING LOANS 8120.01 35.82
PERSONAL LOANS 5326.08 23.50
MORTGAGE LOANS 1473.18 6.49
EDUCATIONAL LOANS 1902.85 8.39
SYND SWARNA 1934.55 8.53
OTHERS 3906.38 17.23
TOTAL 22663.05 100.00
TABLE NO 5.4
PICTORIAL REPRESENTATION OF LOANS FOR YEAR 2010-2011
FIG NO 5.1
SECTOR WISE REPRESENTATION OF LOANS FOR YEAR 2009-2010
DESCRIPTION AMOUNT(Rs in crore ) PERCENTAGE OF TOTAL RETAIL LOANS
HOUSING LOANS 7304.41 36.49
PERSONAL LOANS 5055.40 25.26
MORTGAGE LOANS 2478.73 12.38
EDUCATIONAL LOANS 1459 7.29
SYND SWARNA 1410 7.04
OTHERS 2319.29 11.58
TOTAL 17795 100.00
8120.01
5326.08
1473.18
1902.85
1934.55
3906.38
LOAN AMOUNT(Rs in crore)
HOUSING LOAN
PERSONAL LOAN
MORTGAGE LOAN
EDUCATION LOAN
SYND SWARNA
OTHERS
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TABLE NO 5.5
SECTOR WISE REPRESENTATION OF LOANS FOR YEAR 2008-2009
DESCRIPTION AMOUNT(Rs in crore ) PERCENTAGE OF TOTAL RETAIL LOANS
HOUSING LOANS 6614 37.16
PERSONAL LOANS 4733 26.60
MORTGAGE LOANS 1893 10.64
EDUCATIONAL LOANS 1139 6.40
OTHERS 3416 19.19
TOTAL 17795 100.00
TABLE NO 5.6
COMPARISION OF LOANS FOR YEARS ENDED ON MARCH 31 2009, 2010,2011
FIG NO 5.2
0
2000
4000
60008000
10000
YEAR 2009YEAR 2010
YEAR 2011
COMPARISION OF LOANS FROM 2009 TO
2011
HOUSING LOANS(Rs in
crore)PERSONAL LOANS(Rs in
crore)
MORTGAGE LOANS(Rs in
crore)
EDUCATIONAL LOANS(Rs in
crore)
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CHAPTER 6
E BANKING
Syndicate Bank has always recognized that Information Technology is an essential part
of Banking. The Bank has been in the forefront amongst Public Sector Banks in deploying the
latest available technology, in a way that technology acts as an enabler in the development of
business and ensures that customers are benefited and delighted.
6.1 CORE BANKING SOLUTION
Core Banking Solution is also known as Syndicat-e-banking. The Bank is the first
among the Public Sector Banks to implement Core Banking Solution (CBS), way back in
2001. During the financial year 2007-2008, CBS was further consolidated and the overall
CBS network of the Bank increased to 1829 branches/offices spread across 1033 centres
and accounted for about 96% of the Bank's business. As on 17.03.2009, all the
branches of Syndicate bank are in the CBS fold.
The CBS Project has enabled the Bank to deliver banking products and services
over multiple delivery channels like networked ATMs, Telebanking, Internet Banking
and Mobile Banking, so as to provide Anywhere Anytime Anyhow (AAA) banking
service to customers. With the introduction of CBS, the Bank has transformed the Branch
customers to Bank customers thereby achieving significant shift in customer preference
from brick-and-mortar channel to 24x7 delivery channels.
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6.2 DELIVERY CHANNELS
Delivery channels are various technology based means through which the customers can
transact their business with the Bank at their convenience anywhere and at anytime of the day or
night. Thus, the customers will have choice of transacting business through ATM, Internet
Banking, Telebanking, Mobile banking or through plastic cards such as Credit Card, Debit Card
Smart Card etc., choice of his convenient time, ATMs, Telebanking, Internet Banking and
mobile banking are round the clock available - and choice of his place, these can be accessed at
multiple locations, including overseas locations.
In tune with various needs of the customers, different means or channels have been
evolved
Different delivery channels are
1) Automated Teller Machines
2) Telebanking services
3) Global Debit card
4) Global Credit card
5) Internet Banking
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6.2.1 AUTOMATED TELLER MACHINES
ATMs offer the convenience of withdrawing /depositing cash and performing other
banking transactions without having to visit the branch during pre-fixed business hours.
These machines work round the clock, are safe to transact in a isolated and secure
environment.
With the inter-connected ATMs, the convenience becomes much more acceptable as
the customer can transact from any ATM most convenient to him/her. Thus ATM network
gives the card holder freedom to choose his day, time and place to transact in his account.
E-banking customers of Syndicate Bank can access 1220 ATMs. The Bank is a member of
VISA International, which extends the usage reach of our ATM/Debit Card holders to over
28700 ATMs in the country and over 1.2 million ATMs across the globe. Cardholders of
Syndicate Bank can also transact at Member Establishments (MEs) numbering over 3.5
lakhs in the country and over 2.84 Crores across the globe.
The Bank is also a founder member of the "CashTree" consortium with 5 other banks
since 2003 formed with a view to extend the reach of the cardholders and to enhance
customer convenience. Presently, 13 Banks are members of the network thereby increasing
the total number of ATMs under the "CashTree" network to over 4300.
The services offered through these ATMs are :
Cash Withdrawal and Deposits
Balance Enquiry
Mini statement (last 10 transactions)
Stop Payment of cheque
Funds transfer
Cheque related services including cheque book request
PIN Change
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6.2.2 INTERNET BANKING
Internet Banking, which is emerging as an all-pervasive channel, is gaining acceptance
amongst clientele of the bank. The number of users has increased considerably.
Internet Banking of Syndicate Bank is very user friendly facility. It can be accessed
through the website www.syndicatebank.in .The convenience and ease of operations through
Internet Banking makes it a Unique Value Proposition for the customers. At present there are
5.66 lakh users of Internet banking for Syndicate Bank.
Major services offered to Retail customers by Internet Banking are
Account Related Activities
Standing Instructions
Term Deposit Related Functions
Loans Related Functions
Funds Transfer (to self and third party accounts within the Bank)
Cheque Related
Demand Draft, Banker's Cheque Request
Electronic Bill Presentment And Payments
Online Railway Ticket Booking
SyndBillPay - Utility Bill Payments
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6.2.3 TELEBANKING SERVICES
Undertaking a host of banking related services including financial transactions from theconvenience of Customers’ chosen place anywhere across the GLOBE and any time of date and
night has now been made possible by introducing on-line Telebanking services. By dialing the
given Telebanking number through a landline or a mobile from anywhere, the customer can
access his account and by following the user friendly menu, entire banking can be done through
Interactive Voice Response (IVR) system
The system is has following facilities offered;
Automatic balance voice out for the default account.
Balance inquiry and transaction inquiry in all
Inquiry of all term deposit account
Statement of account by Fax, e-mail or ordinary mail.
Cheque book request
Stop payment which is on-line and instantaneous
Transfer of funds with CBS which is automatic and instantaneous
Utility Bill Payments
Voice out of last five transactions.
Various inquiries such as term deposit rates, forex rates etc.
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6.3 GLOBAL CARDS
6.3.1 SYNDICATE BANK GLOBAL DEBIT CARD
Syndicate Bank Global Credit Card (SBGCC) is a payment product of great value and
convenience offered to the customers. Its unmatched features and very attractive offer makes it a
unique product in its class.
1. FEATURES OF THE CARD:
Acceptance at following locations-
Purpose Locations
Cash
Withdrawa
l
All ATMs of Syndicate Bank (over 1200) and ATMs displaying
VISA logo (over 50,000 in India & over 10 Lakh across the Globe)
Purchases All Merchant Establishments accepting VISA Cards (over 5 Lakhs in
India & over 26 million across the Globe)
Others Internet, Mail Orders & Telemarketing
TABLE NO 6.1
Rewards points of one point for every Rs. 200 spend with the Card.
Syndicate Bank Global Credit Card is issued in association with VISA.
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2. ELIGIBILITY CRITERIA (RESIDENT INDIANS):
The applicant should -
Be the resident of / working within operational area of the Card Issuing Branch.
Not be a minor or an illiterate person.
Preferably be a customer of our Bank having satisfactory operations in the account with
branch for at least 3 months.
Have Permanent Account Number (PAN) issued by Income Tax Department.
Be of the age group and have independent income as shown below-
Category of applicant Age eligibility as on the
date of application
Minimum Annual
Income
(Amount in rupees)
Gold Classic
Salaried Persons Over 21 & under 60 years 1,50,000 60,000
Self-Employed persons,
Professionals & Businesssegment
Over 21 & under 65 years 2,00,000 1,00,000
Senior Citizens &
Pensioners
Maximum 75 years Not eligible 60,000
TABLE NO 6.2
3. BILLING SCHEDULE AND PAYMENT MODE/ PROCEDURE:
The Billing Statements showing the details of transactions through the Card, Charges levied& payments received are generated as on 20
thof every month and sent to Cardholders
presently by ordinary post.
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6.3.2 SYNDICATE BANK GLOBAL DEBIT CARD
Syndicate Bank Global Debit-cum-ATM Card brings customers the convenience of
accessing their money anytime & from anywhere globally. They can transact in any currency,
but pay in Indian Rupees. It is a convenient e-wallet valid in India & abroad with VISA Power.
The Card is offered for all eligible accounts with any of Syndicate-e-banking (CBS) branches of
the Bank.
FEATURES OF THE CARD:
1. Acceptance at following locations-
LOCATION LOGO PURPOSE
All ATMs of SyndicateBank
For Cash Withdrawal, Balance
Enquiry, Mini Statement & Change
of PIN through over 1211 ATMs
Other Banks’ ATMs
displaying
VISA Logo
For Cash Withdrawal & Balance
Enquiry through over 16,000 ATMs
in India and over 10 lakh ATMs
globally
Merchant
Establishments
Displaying VISA Logo
For purchases through over 1.88
lakh MEs in India and over 24million Mes globally
All ‘CashTree’ ATMs
For Cash Withdrawal & Balance
Enquiry through over 3,000 ATMs
National Financial
Switch (NFS) NetworkFor Cash Withdrawal & Balance
Enquiry through over 46,875
ATMs.
TABLE NO 6.3
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2. Syndicate Bank Global Debit Card is issued in association with VISA.
3. USAGE LIMITS:
SlNo Description
Transaction limitin Indian Rs orequivalent ForeignCurrency at ourATM in India orVISA ATM outsideIndia
Transaction limit inIndian Rs orequivalent ForeignCurrency at otherBank’s ATM in
India (VISA, CashTree/ NFS)
01 Minimum value of any transaction atATM
Rs.100/- Rs.100/-
02 Maximum value per transaction at
ATM
Rs.20,000/- Rs.10,000/-
03 Maximum value of on-line transaction
per day at ATMRs.25,000/- Rs.25,000/-
04 Number of transaction permissible per
month
No Restriction No Restriction
5 Transactions Free
for SB customers and
all transactions
chargeable for
CA/OD customers
05 Applicability of per transaction and
per day monetary limit
Both for domestic
and International
transactions
Both for domestic and
International
transactions
TABLE NO 6.4
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4. ELIGIBLE CUSTOMERS:
All individuals (including NRIs, Foreign Nationals but excluding minors & illiterate
persons) maintaining individual or joint (operated by any one) Savings Bank, Current or
Overdraft A/cs.
All Proprietorship Firms maintaining Current or Overdraft A/cs.
Up to three accounts of a person with same Customer ID with the Bank can be linked to a
Debit Card.
5. LOST CARD LIABILITY:
In the event of loss/theft of Debit Card in the hands of Cardholder, the liability of the
Cardholder would be limited to a maximum of Rs.1, 000/- from the time of notification of
such loss/theft of the Card to the Bank.
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CHAPTER 7
PRIMARY RESEARCH
7.1 QUESTIONNAIRE
A sample of 33 people is surveyed using primary questionnaire and the inferences that are drawn
are given below. This research is done as to supplement secondary data.
1. For the question which bank do they have accounts , SBI topped the list with 60% of
people having replied that they have account in SBI which is followed by Andhra Bank
with 21% people having accounts in it.
FIG NO 7.1
3
1212
60
18
3
126
93
21
3 12
36
9
3 3
ACCOUNTS (in terms of %)FEDERAL BANK
HDFC BANK
BANK OF BARODA
SBIANDHRA BANK
HSBC BANK
SBH
SYNDICATE BANK
CANARA BANK
VIJAYA BANK
ICICI BANK
INDIAN BANK
BANK OF INDIA
KARUR VYSYA BANKDENA BANK
UNION BANK OF INDIA
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2. For the question of Recall of public sector banks, 58% people recalled SBI followed by
Andhra Bank which was recalled by 33% people. Syndicate Bank was recalled by 24%
people.
FIG NO 7.2
3. For the question whether people heard of Syndicate Bank or not, 94% people replied
that they have heard of Syndicate Bank.
FIG NO 7.3
24
33
5815
21
15
6
39
63
66
15
RECALL OF PUBLIC SECTOR BANKS(in terms of %)
SYNDICATE BANKANDHRA BANKSBICANARA BANKBANK OF BARODAINDIAN BANKPUNJAB NATIONAL BANKVIJAYA BANKINDIAN OVERSEAS BANKUCO BANKALLAHABAD BANKCORPORATION BANK
94
6
WHETHER THE RESPONDENT HAS HEARD ABOUT
SYNDICATE BANK OR NOT
YES NO
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4. For the question what is the most important feature that attracts them in products and
services provided by bank, Availability of branch nearby attracts them the most with
40% of people favouring it.
FIG NO 7.4
5. For the question whether people are using Internet banking and visiting branch 58%
people replied that they do not use Internet Banking.42% people use internet banking out
of which only 12% people visit branch even after using internet banking.
FIG NO 7.5
30
27
40
3
IMPORTANT FEATURE THAT ATTRACTS
CUSTOMER(in terms of %)
PROMPTNESS OF SERVICE
BEHAVIOR OF BANK OFFICIALS
AVAILABILITY OF BRANCH
NEARBY
TECH SAVVY
12
30
58
CUSTOMERS USE INTERNET BANKING AND VISIT
BRANCH
YES AND VISIT BRANCH
YES AND DO NOT VISIT BRANCH
DO NOT USE INTERNET
BANKING AND VISIT BRANCH
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6. For the question about whether the people are aware of Syndicate Bank’s Global
debit card and Global credit card only 6% people replied that they are aware of them.
FIG NO 7.6
7. For the question what do the customers look in for when they approach a bank for a
loan, 61% people responded that they look in for Timely Processing when they approach
a bank for a loan
FIG NO 7.7
6
94
RESPONDENT IS AWARE OF SYNDICATE
BANK'S GLOBAL DEBIT AND CREDIT CARDS
YES
NO
6115
9
15
FEATURE THAT CUSTOMERS LOOK INTO WHILE
THEY APPROACH FOR LOAN
TIMELY PROCESSING
BEHAVIOR OF BANK OFFICIALS
QUANTUM OF LOAN
REPUTATION OF BANK
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8. For the question whether people would prefer National Savings Certificate or Fixed
Deposit in a Bank, 79% people prefer Fixed Deposit in Bank while only 21% people
prefer National Savings Certificate.
FIG NO 7.8
7.2 SUGGESTIONS
21
79
CUSTOMERS PREFER NATIONAL SAVINGS
CERTIFICATE OR FIXED DEPOSIT IN BANK(in terms
of %)
NATIONAL SAVINGS
CERTIFICATE
FIXED DEPOSIT IN A BANK
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Market share of Syndicate Bank being low Vis a Vis other banks, Syndicate Bank needs
to make aggressive strategies to make an effective dent in market so that more number of
people open account with Syndicate Bank.
The recall level of Syndicate Bank is comparatively low and advertising and other image
building exercises need to be implemented to improve recall level
Since most of the respondents have indicated, availability of nearby branch as one of the
most important features which attracts them, Syndicate Bank is in good position as it has
a network of 2494 branches and 1220 ATMs spread across length and breadth of country
Since there is a mix of customers using Internet banking or visiting branch, the bank
needs to keep a balance between the number of branches and at the same time making
available an excellent Internet banking system
Since only 6% of people are aware of Global Debit Card and Global Credit Card
provided by Syndicate Bank, an effective advertising and publicity needs to be carriedout to increase the awareness of the cards.
As most of respondents have indicated that Timely processing of loan as one of the most
important feature, Syndicate Bank needs to emphasise on speedy/prompt disposal of loan
proposal.
CHAPTER 8
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DATA FINDINGS AND ITS ANALYSIS
8.1 COMPARISION OF DEPOSITS OF SYNDICATE BANK VIS-À-VIS
ICICI BANK AND ANDHRA BANK FOR FISCAL YEAR 2010-2011
DEPOSIT SYNDICATE
BANK(Rs in crore)
ICICI BANK(Rs in
crore)
ANDHRA BANK(Rs
in crore)
CASA 41945 101647 26779
TERM 135306 123955 65337
TABLE NO 8.1
PICTORIAL REPRESENTATION OF ABOVE DATA
FIG NO 8.1
ANALYSIS:
0
20000
40000
60000
80000
100000
120000
140000
SYNDICATE BANK ICICI BANK ANDHRA BANK
41945
101647
26779
135306123955
65337CASA
TERM DEPOSIT
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With reference to CASA deposits for the year ended 31st
March 2011, ICICI bank tops
the list with Rs 101647 Crore followed by Syndicate Bank with Rs 41945 Crore its and Andhra
Bank is in third position with Rs 28342.35 Crore.
On basis of Term deposits for the year ended 31st
March 2011, Syndicate Bank is in first
place with Rs 135306 Crore and ICICI Bank is in second place with Rs 123955 Crore. Andhra
Bank is in Third place with Rs 73447.55 Crore.
8.2 COMPARISION OF LOANS OF SYNDICATE BANK VIS-À-
VIS ICICI BANK AND ANDHRA BANK FOR FISCAL YEAR
2010-2011
SYNDICATE
BANK(in Rs Crores)
ICICI BANK(in Rs
Crores)
ANDHRA BANK(in
Rs Crores)
HOUSING LOANS 8120.01 54126 4479
PERSONAL LOANS 5326.08 4031 1349.69
EDUCATION
LOANS
1902.85 0 1621.66
LOANS AGAINST
SECURITIES,GOLD
AND PROPERTIES
3407.73 1347 1544
AUTOMOBILE
LOANS
983.46 8581 609
OTHER LOANS 2922.92 13675 875.65
TOTAL 22663.92 81760 10479
TABLE NO 8.2
PICTORIAL REPRESENTATION OF ABOVE DATA
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FIG NO 8.2
ANALYSIS:
In terms of Housing loans for the year ended 31st March 2011, ICICI Bank tops the list with
Rs 54126 Crore followed by Syndicate Bank with Rs 8120.01 Crore and Andhra Bank is third
with Rs 4479 Crore.
In terms of Personal loans for the year ended 31st
March 2011, Syndicate Bank tops the list
with Rs 5326.08 Crore and ICICI Bank is second with Rs 4031 Crore. Andhra Bank occupies
third position with Rs 1349.69 Crore.
On basis of Education loans for the year ended 31st
March 2011, Syndicate Bank tops the list
with Rs 1902.85 Crore closely followed by Andhra Bank with 1621.66 Crore. ICICI Bank does
not provide Educational Loan.
In terms of Loans given against Gold, Property and Securities the year ended 31st March
2011, Syndicate Bank is the top with Rs 3407.73 Crore and Andhra bank is in second place with
Rs 1544 Crore. ICICI Bank is in Third place with Rs 1347 Crore.
Based on Automobile loans given for the year ended 31st
March 2011, ICICI Bank is at pole
position with Rs 8581 Crore followed by Syndicate Bank with Rs 983.46 Crore. Andhra Bank is
in Third place with Rs 609 Crore.
0
10000
20000
30000
40000
50000
60000
SYNDICATE
BANK
ICICI BANK ANDHRA BANK
L O A N A M O
U N T I N C R O R E
BANKS
HOUSING LOANS(Rs in crores)
PERSONAL LOANS(Rs in crores)
EDUCATION LOANS(Rs in crores)
LOANS AGAINST GOLD,PROPERTY
AND SECURITIES(Rs in crores)
AUTOMOBILE LOANS(Rs in crores)
OTHER LOANS(Rs in crores)
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8.3 COMPARISION OF ATMs OF SYNDICATE BANK VIS A VIS ICICI
BANK AND ANDHRA BANK AS ON 31ST MARCH 2011
BANK NUMBER OF ATM’S(as on 31st March
2011)
SYNDICATE BANK 1220
ICICI BANK 6055
ANDHRA BANK 981
TABLE NO 8.3
PICTORIAL REPRESENTATION OF ABOVE DATA
FIG NO 8.3
ANALYSIS:In terms of number of ATM’s across the country, being the largest private sector bank in the
country ICICI bank tops the list with 6055 ATMs followed by Syndicate Bank with 1220 ATMs.
Andhra Bank occupies Third place with 981 ATMs.
0
1000
20003000
4000
5000
6000
7000
SYDICATE
BANK
ICICI BANK ANDHRA BANK
NUMBER OF ATM'S(as on 31st March 2011)
NUMBER OF ATM'S(as on 31st
March 2011)
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8.4 COMPARISION OF TOTAL BUSINESS OF SYNDICATE BANK VIS A VIS OTHER BANKS
BANKS TOTAL BUSINESS IN CRORES(RS)
ANDHRA BANK 164310
SYNDICATE BANK 243946ICICI BANK 461958
SBI 1738049
PUNJAB NATIONAL BANK 555005CANARA BANK 506440
BANK OF INDIA 515040
BANK OF BARODA 534116
HDFC BANK 368569
TABLE 8.4
FIG 8.4
INFERENCE:
In terms of total business SBI stands in first place with Rs 17, 38,049 crores followed by Punjab
National Bank with Rs 5,55,005 Crores. Syndicate Bank is in 8th place with Rs 2,43,946 Crores
0200000400000600000800000
100000012000001400000160000018000002000000
TOTAL BUSINESS IN RS CRORES
ANDHRA BANK
SYNDICATE BANK
ICICI BANK
STATE BANK OF INDIA
PUNJAB NATIONAL BANK
CANARA BANK
BANK OF INDIA
BANK OF BARODA
HDFC BANK
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8.5 COMPARISION OF TOTAL DEPOSITS OF SYNDICATE BANK VIS A VIS OTHER BANKS
BANKS TOTAL DEPOSITS IN CRORES(RS)
ANDHRA BANK 92516
SYNDICATE BANK 135596ICICI BANK 225602
SBI 804116
PUNJAB NATIONAL BANK 312899CANARA BANK 293973
BANK OF INDIA 298885
BANK OF BARODA 305439
HDFC BANK 208586
OTHER BANKS 2406240TOTAL DEPOSITS 5083852
TABLE 8.5
FIG 8.5.1
INFERENCE:
In terms of total business SBI stands in first place with Rs 804116 crores followed by Punjab
National Bank with Rs 312889 Crores. Syndicate Bank is in 8 th place with Rs 1,35,596 Crores
0100000200000300000400000500000
600000700000800000900000
TOTAL DEPOSITS IN CRORES
ANDHRA BANK
SYNDICATE BANK
ICICI BANK
STATE BANK OF INDIA
PUNJAB NATIONAL BANK
CANARA BANK
BANK OF INDIA
BANK OF BARODA
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FIG 8.5.2
INFERENCE:
In terms of total deposits of all the banks SBI and its associates has highest share with 15.8% of
total deposits followed by Punjab National Bank with 6.15% share. Syndicate Bank is in 8th
place with 2.66% share of total deposits.
1.8 2.66 4.4
15.8
6.15
5.78
5.87
64.1
47.33
DEPOSITS OF BANKS IN TERMS OF % OF TOTAL
DEPOSITSANDHRA BANK(1.8 %)
SYNDICATE BANK(2.66 %)
ICICI BANK(4.4 %)
SBI AND ITS ASSOCIATES(15.8 %)
PUNJAB NATIONAL BANK(6.15 %)
CANARA BANK(5.78 %)
BANK OF INDIA(5.87 %)
BANK OF BARODA(6 %)
HDFC BANK(4.1 %)
OTHER BANKS(47.33 %)
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8.6 COMPARISION OF ADVANCES OF SYNDICATE BANK VIS A VISOTHER BANKS
BANKS ADVANCES IN CRORES(RS)
ANDHRA BANK 49129SYNDICATE BANK 108350ICICI BANK 216366
SBI 933933PUNJAB NATIONAL BANK 242107
CANARA BANK 212467
BANK OF INDIA 165147BANK OF BARODA 228676
HDFC BANK 159983
OTHER BANKS 1494287
TOTAL ADVANCES 3810445
TABLE 8.6
FIG 8.6.1
INFERENCE:
In terms of total advances SBI stands in first place with Rs 9,33,933 crores followed by Punjab
National Bank with Rs 2,42,107 Crores. Syndicate Bank is in 8th place with Rs 1,08,350 Crores
0100000200000300000400000
500000600000700000800000900000
1000000
ADVANCES IN CRORES
ANDHRA BANK
SYNDICATE BANK
ICICI BANK
STATE BANK OF INDIA
PUNJAB NATIONAL BANK
CANARA BANK
BANK OF INDIA
BANK OF BARODA
HDFC BANK
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FIG 8.6.2
INFERENCE
In terms of advances of all the banks SBI and its associates has highest share with 24% of total
advances followed by Punjab National Bank with 6.35% share. Syndicate Bank is in 8th
place
with 2.84% share of total advances.
1.2 2.84 5.67
24.5
6.35
5.574.336
4.19
39.2
ADVANCES OF BANKS IN TERMS OF % OF TOTAL
ADVANCESANDHRA BANK(1.2 %)
SYNDICATE BANK(2.84 %)
ICICI BANK(5.67 %)
SBI AND ITS ASSOCIATES(24.5 %)
PUNJAB NATIONAL BANK(6.35 %)
CANARA BANK(5.57 %)
BANK OF INDIA(4.33 %)
BANK OF BARODA(6 %)
HDFC BANK(4.19 %)
OTHER BANKS(39.2 %)
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8.6 COMPARISION OF RETAIL ADVANCES OF SYNDICATE BANK VIS A VIS OTHER BANKS
BANKS RETAIL ADVANCES IN CRORES(RS)
ANDHRA BANK 8843SYNDICATE BANK 22663ICICI BANK 45436.8
SBI 214804.5PUNJAB NATIONAL BANK 46231
CANARA BANK 40368
BANK OF INDIA 31870BANK OF BARODA 36538
HDFC BANK 32911.6
OTHER BANKS 286178.9
TOTAL ADVANCES 765387.25
TABLE 8.7
FIG 8.7.1
INFERENCE:
In terms of Retail advances SBI and its Associates stands in first place with Rs 2,14,804.5 crores
followed by Punjab National Bank with Rs 46,231 Crores. Syndicate Bank is in 8th
place with Rs
22,663.05 Crores
0
50000
100000
150000
200000
250000
TOTAL RETAIL ADVANCES IN CRORES
ANDHRA BANK
SYNDICATE BANK
ICICI BANK
SBI AND ITS ASSOCIATES
PUNJAB NATIONAL BANK
CANARA BANK
BANK OF INDIA
BANK OF BARODA
HDFC BANK
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FIG 8.7.2
INFERENCE
In terms of Retail advances of all the banks SBI and its associates has highest share with 28.06%
of total advances followed by Punjab National Bank with 6% share. Syndicate Bank is in 8th
place with 2.96% share of Retail Advances.
1.15 2.96 5.93
28.06
65.274.16
4.78
4.3
37.39
RETAIL ADVANCES OF BANKS IN TERMS OF % OF
TOTAL RETAIL ADVANCES
ANDHRA BANK(1.15 %)
SYNDICATE BANK(2.96 %)
ICICI BANK(5.93 %)
SBI AND ITS ASSOCIATES(28.06 %)
PUNJAB NATIONAL BANK(6 %)
CANARA BANK(5.27 %)
BANK OF INDIA(4.16 %)
BANK OF BARODA(4.78 %)
HDFC BANK(4.3 %)
OTHER BANKS(37.39 %)
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CHAPTER 9
CONCLUSION
The Study of retail products both deposits and advances of Syndicate Bank has given insight
into the products and services offered by the bank into the individuals/retail clients. It has given
opportunity to study the various factors pertaining to eligibility, quantum of loan and repayment
schedule for individual customers.
The study has thrown light on behavioural aspects of customers and has provided certain
inputs of bringing about improvements in the marketing strategies in the marketing of products
by devising suitable strategies.
The comparative study between Syndicate Bank and other banks has given the inputs
regarding where does Syndicate Bank stand Vis a Vis other banks namely ICICI Bank and
Andhra Bank.
Though there is lot more scope for research in these retail products but since time is
constraint research could not be carried to full extent.
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ANNEXURE -1 QUESTIONNAIRE
NAME: AGE:
1) In which bank do you have accounts?
………………………………………
……………………………………….
2) Can you name any 3 public sector banks?
………………………………………….
3) Have you heard about Syndicate Bank?
……………………………………………………………………………
4) What is the most important which attracts you in the products and services provided by a
bank?
a) Promptness of service c) Behavior of bank officials
b) Availability of branch nearby d) Tech savvy
5) Are you using Internet Banking and if yes are you visiting branch or not?
………………………………………………………………………………………………
6) Are you aware of Syndicate Bank’s Global Debit and Credit Card and if yes how
frequently you use it?
………………………………………………………………………………………………
7) If you approach a bank for availing a loan facility what do you look in for
a) Timely processing c) Quantum of loan
b) Reputation of bank d) Behavior of Bank officials
8) Out of National Savings Certificate and fixed deposit in a bank which one do you
prefer?
………………………………………………………………………………
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BIBLIOGRAPHY
WEBSITES:
www.syndicatebank.in
http://en.wikipedia.org/wiki/Bank
http://en.wikipedia.org/wiki/Syndicate_bank
http://finance.indiamart.com/investment_in_india/banking_in_india.html
http://en.wikipedia.org/wiki/Banking_in_India
www.andhrabank.in
www.icicibank.com
ANNUAL REPORTS OF ANDHRA BANK, SYNDICATE BANK, ICICI BANK, HDFC
BANK, PUNJAB NATIONAL BANK, SBI, BANK OF INDIA, BANK OF BARODA,
CANARA BANK
BOOKS:
KENT ERIKSSON 2008 The Future of Retail Banking Emerald Group Publishing
Limited
KEITH POND 2007 Retail Banking London Financial World Publishing Limited
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GLOSSARY
BASE RATE:
It is the interest rate that is calculated by taking into account bank’s cost of deposits,
operating costs, Cash Reserve Ratio, Statutory Liquidity Ratio and profit margin
CHEQUE:
Cheque is an instrument in writing containing an unconditional order, addressed to a
banker, sign by the person who has deposited money with the banker, requiring him to pay on
demand a certain sum of money only to or to the order of certain person or to the bearer of
instrument.
CLEAN LOAN:
Clean loans are the loans granted by a bank without offering any security.
EQUATED MONTHLY INSTALLMENTS:
In this system of repayment, interest for the entire loan tenure is computed and added to
the principal amount. Then the sum is divided by the number of months in which the loan has to
be repaid. The result is called Equated Monthly Installments
HOLISTIC APPROACH:
This approach does not concentrate on deep financial analysis but concentrates on
securities against which loans are offered.
HYPOTHECATION:
Hypothecation is pledging of securities or other assets as collateral to secure a loan. It
does not transfer title but provides the right to sell the pledged property in the event of default
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IRREVOCABLE LETTER OF CREDIT:
It is letter of credit that cannot be cancelled. This guarantees that buyer’s payment to
seller is received on time and for correct amount.
LETTER OF CREDIT:
A letter from a bank guaranteeing that buyer’s payment to seller will be received on time
and for correct amount.
LOAN:
An arrangement in which a lender gives money or property to a borrower, and the
borrower agrees to return the property or repay the money, usually along with interest, at some
future point of time.
MARGIN:
It the amount of collateral a customer deposits with a broker when borrowing from the
broker to buy securities
MORTGAGE:The charging of real (or personal) property by a debtor to a creditor as security for a debt
(esp. one incurred by the purchase of the property), on the condition that it shall be returned on
payment of the debt within a certain period
OVERDRAFT:
Over Draft occurs when the account holder withdraws more money from a Bank Account
than has been deposited in it. It is allowed against a host of other securities including financial
instruments like shares, units of mutual funds, surrender value of LIC policy and debentures etc.
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OTHER SECURED LOANS (OSL):
These are the loans that are given on securities other than deposits.
REGISTERED EQUITABLE MORTGAGE:In this type of mortgage the lien lies in favour of lender for amount lent and is recorded in
revenue records. Borrower cannot sell mortgage without prior consent of lender.
REMITTANCE:
Remittance is making payment by non credit means. Examples of remittances include
cash, cheque, and electronic transfer.
SECURED OVEDRAFT:
These overdrafts are extended upon customers pledging their time deposits, properties as
collateral to the bank.
SECURITY:
Security is something deposited or pledged as a guarantee of the fulfillment of an
undertaking or the repayment of a loan, to be forfeited in case of default
UNREGISTERED EQUITABLE MORTGAGE:
I thi t f t titl d d f i bl t t b d it d ith th