INDUSTRY PROFILE

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

financial needs of industry, trade and agriculture. At present, there are 286 scheduled
commercial banks in the country, with a network of 67,742 branches. Scheduled
commercial banks are the ones that are listed in the second schedule to the RBI Act, and
may further be classified as public sector banks, private sector banks and foreign banks
Scheduled commercial banks have a presence throughout India, with nearly 69.72% of
bank branches located in rural or semi-urban areas of the country. A large number of
these branches belong to the public sector banks.

Public sector banks make up the largest category of banks in the Indian banking
system. There are 27 public sector banks in India. They include the SBI and its associate
banks and 19 nationalized banks. Nationalized banks are governed by the Banking
Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980. The banks
nationalized under the Banking Companies (Acquisition and Transfer of Undertakings)
Act 1970 and 1980 are referred to as corresponding new banks. Syndicate Bank is a
corresponding new bank, nationalized in 1969 under the Bank Acquisition Act.

Public sector banks operate in the remotest possible areas of the country and give
employment opportunity to one and all. Contrary to their private sector counterparts,
technological up gradation is still in infancy in public sector banks. The most astonishing
feature of the public sector banks is that many employees are not computer literate and
the personnels average age is 40+. These banks are also subject to limited government
interference. But he last decade has seen many positive developments in the Indian
banking sector. These banks have established an outstanding track record of innovation,
growth and value creation. But nonetheless, the banking sector is the fastest growing and
the most flourishing sector in the Indian economy. The major players in this sector are
private and public sector banks.Though the banking sector is going through a rough patch
nowadays, still this sector contributes the most to the world GDP. These banks should
strive to penetrate the untapped areas of the market to overshadow the downward trend in
this sector.
 COMPANY PROFILE

The difference between a successful person and others is not a lack of strength, not a
lack of knowledge, but rather lack of will

Syndicate Bank was established in 1925 in Udupi, and was originally known as
Canara Industrial and Banking Syndicate Limited. It was renamed as Syndicate Bank
Limited with effect from Jan 1, 1964 and was nationalized in 1969. It was started with a
capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a businessman, Sri
Vaman Kudva, an engineer and Dr. T M A Pai, a physician. Their objective was
primarily to extend financial assistance to the local weavers who were crippled by a crisis
in the handloom industry through mobilizing small savings from the community. The
bank collected as low as 2 annas daily at the doorsteps of the depositors through its
Agents under its Pigmy Deposit Scheme started in 1928. This scheme is the Bank's brand
equity today and the Bank collects around Rs. 2 crore per day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of
progressive banking in India. Spanning over 80 years of pioneering expertise, the Bank
has created for itself a solid customer base comprising customers of two or three
generations. Being firmly rooted in rural India and understanding the grass root realities,
the Bank's perception had vision of future India. It has been propagating innovations in
Banking and also has been receptive to new ideas, without however getting uprooted
from its distinctive socio-economic and cultural ethos. Its philosophy of growth by
mutual sustenance of both the Bank and the people has paid rich dividends. The Bank has
been operating as a catalyst of development across the country with particular reference
to the common man at the individual level and in rural/semi urban centers at the area
level.

Syndicate Bank today is placed in the league of large and leading public sector banks in
India. The bank is a pioneer in introducing several initiatives such as agricultural
financing and door-to-door banking, which are now recognized as benchmark by the
industry. The bank offers wide gamut of services including deposits, corporate and retail
loans, cash management, foreign trade services, cards, insurance. Syndicate bank has won
accolades for its service in rural communities and achieving exemplary customer service
 is an ongoing priority for the bank. The bank has a large network of 2,125 branches in
India with overseas presence in London and boasts of a workforce of over 25000
employees.

In addition, it has been managing exchange companies in the Middle East to channelize
remittance from expatriates to India. The Bank has launched an ambitious technology
plan called Core Banking Solution (CBS) whereby 500 of our strategic branches with
their ATMs are being networked nationwide over a 4 year period. The bank has made
steady progress over the years and has had a consistent performance throughout.
The IT initiatives of the Bank have been amply recognized and rewarded both nationally
and globally, which can be seen from the following awards won by the Bank during this
year.

Best use of IT for customer service in Semi-urban and Rural areas by IDRBT,
Hyderabad.
Best Core Banking Project among Large Banks in Asia Pacific Region
The Asian Banker IT Implementation Awards
The Asian banker IT implementation AWARD 06 for best core banking project
for large banks

The bank is known for its customer friendly approach. The bank is committed to
providing high quality customer service and timely redressal of customer
grievance.

VISION

Consolidating position as a premier public sector bank with increased global outreach.
Emerging as a strong, vibrant, responsive, competitive bank.
Embracing state-of-art technology harnessing human potential and effectively
participating in the process of nation building.
Serving its constituents and shareholders as a faithful friendly financial partner.

MISSION
The bank continuously envisages to:

Add core deposits continuously

Offer better customer service

Enhance tolerance level in dealing with customers and get better understanding of
their requirements
Design and deliver the products and services according to its customers needs so
as to give them an exhilarating and enthusiastic experience.
Acquire accounts aggressively

Year of NPA resolution

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

Business: To achieve global business of Rs. 250 thousand crores by March

2010.
Resources: To achieve global deposits of Rs. 170000 crore by March 2010
with emphasis on low cost resources by planned strategic initiatives including
branch expansion, aggressive marketing and active involvement of each and
every employee.
Advances: To build qualitative asset base of around Rs. 90000 crore by
March 2010 to augment the income portfolio of the bank.
Priority sector credit: To have accelerated and qualitative growth in priority
sector lending to reach a level of Rs. 23800 crore, Rs. 10200 crore under
agriculture, Rs. 3514 crore under SME through various customer friendly
credit products and to take maximum advantage of Financial Inclusion so
as to expand the clientele base of the bank, and provide financial assistance to
all eligible candidates.
Information Technology: To harness state-of-art technology and network all
branches so as to make available reliable MIS for DSS and deploy best
practices in Information Security to manage the business effectively and
profitably.
 Management of assets : To make 2008-09 truly a year of NPA resolution
by striving for getting A rating under asset quality by upgrading NPAs,
bringing down gross NPA and net NPA level both in absolute and percentage
terms below march 2009 figure and accomplish NPA recovery target as per
commitment.

Foreign exchange and treasury: To profitably manage the forex and

investment assets of the bank to achieve an export-import turnover of Rs.
15000 crore and Rs. 12750 crore respectively. To achieve treasury income of
Rs. 2345 crore with an investment of Rs. 35000 crore.
Profitability: To make every branch a profits centre and ensure best possible
returns to the shareholders.
Risk management: To continuously upgrade the risk management systems
and processes, imbibe risk management in business activities and implement
Basel II requirements for the benefit of all stakeholders.
Human resources and organizational structure: To mould and strengthen
the organizational structure to meet the future business requirements and
challenges. To redefine and to redevelop peoples management techniques so
as to unleash human potential, drive growth and nurture leadership of high
quality corporate governance,
Customer relationship management : To fine-tune its marketing strategies
to meet the ever growing market odds, to ensure that our products and services
adapt to the changing needs and expectations of the customers, to provide the
customer the ideal banking ambience, to reorient its publicity so as to provide
increased visibility to its brand.
Inspection: To migrate progressively from the present transaction oriented
system to a risk based audit exercise enhancing the effectiveness of risk
management, control and governance processes.
 OBJECTIVES

To have an overview of the organization.

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

PRODUCT PROFILE

BANKING ACTIVITIES : This activity includes the following :

o Syndicate Bank Global Debit Card
o Syndicate Bank Global Credit Cards

BANCASSURANCE: The bank provides insurance services in association with

Bajaj Allianz.
o Life Insurance Products
o Non Life Insurance

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

INVESTGAIN
CASHGAIN
CHILDGAIN
RISKCARE
TERMCARE
LIFETIMECARE
SWARNA-VISHRANTI
UNITGAIN
LOAN PROTECTOR
SYNDDRIVER
o Cash Management (SCMS)

DEPOSIT SCHEMES :
Synd 400 Plus and Synd 500 Plus
 Savings Deposit Account:
Special Premium Savings Accounts

o Fixed Deposit Scheme:

o Vikas Cash Certificate:
o Social Security Deposit:
o Senior Citizens Security Deposit
o Syndicate Suvidha Deposit
o Cumulative SyndTaxShield Deposit Scheme
o Pigmy Deposit
o Super Premium Savings Bank Account
o Synd Samanya Savings Bank Account (No Frills Account) :
o SyndFlexi Current Account
SYND BANK SERVICES (BPO): It is a wholly owned subsidiary of Syndicate
Bank. This is a first BPO outfit of a Nationalized Bank. This BPO Company is
proposed to undertake the following activities facilitating customers to file their
income tax returns, undertaking Back Office functions relating to Bank's Debit /
Credit Card / Bancassurance Business etc.

LOAN PRODUCTS :
SyndRent
SyndSaral:
SyndSenior:
SyndVidyarthi:
SyndNivas:
SyndNivasPlus:
SyndPigmy:
SyndKisan:
SyndVahan:
SyndLaghuUdyami:
SyndMahila:
SyndMortgage:
SyndPravasi:
m. SyndSmallCredit:
SyndSuvidha:
 SyndUdyog:
SyndVyapar:
SyndJaiKisan
SyndShakti

AGRICULTURAL LOAN PRODUCTS :

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

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

ORGANISATION CHART
FUNCTIONAL AREAS

3.1 Accounts
3.2 Audit and inspection
3.3 Credit
3.4 Human resources
3.5 Information technology
3.6 Insurance
3.7 Planning and development
3.8 Recovery
3.9 Risk management
3.10 3.10 Retail banking

HUMAN RESOURCES

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

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

including women and sc/st employees. SIBM (Syndicate Institute of Bank Management)
was established in November 1987 and is the apex training institution of Syndicate Bank
for honing skills in banking and management for the bank's executives and senior
personnel. Training activities of the Bank are governed by the policies and procedures
laid down in the Training Manual. Training programmes are classified into two
categories, general programmes and special programmes. 40 General Programmes, in
branches like Risk Management, Credit Management, Recovery Management, Internal
Control Management, Human Resource Management, Marketing and Quality
Improvement, Foreign Exchange, Information Technology, are identified and their course
contents, target groups are listed in the Training Manual. Special programmes are
designed based on the recommendations of the Departments at Head Office and
Corporate Office, taking into account the Corporate Goals, Policies, requirements,
business plans and strategies, target group etc

INFORMATION TECHNOLOGY

We cannot function with yesterdays tools and still remain in business tomorrow
The bank has created this dept to promote computer literacy among employees, to
upgrade communication to develop electronic banking capabilities. Presently all branches
are computerized. All 156 ATMs are interconnected to the Financial Transaction Switch
and all the customers of CBS branches can use them. The bank has joined the Real Time
Gross Settlement System (RTGS) and 397 branches of the bank are RTGS enabled.
Syndicate Bank has chose i-flexs FLEXCUBE and IBMs infrastructure technologies
and implementation services to upgrade its system.
\
INSURANCE

The bank has also entered the insurance sector and has tie-ups with some of the major
companies of the insurance world.

The bank provides the insurance cover association with Bajaj Allianz Life Insurance.
Allianz Bajaj Life Insurance Company has signed a memorandum of understanding with
Syndicate Bank for distributing its insurance products through the bank's pan-India
branch network.

PLANNING AND DEVELOPMENT

Planning unfolds the unexpectedness of the future well in advance to

strategize actions for continuation of journey against odds

Planning is a strategic tool of the management to chart out the future course of
action. The plan for the year 2008-09 is:

Acquire accounts aggressively: It is a bad patch currently, still it aims to

increase its customer base. This theme is a conscious effort to replicate its
outstanding performance under 1 million accounts campaign launched in the
previous year.
Add core deposits continuously: core deposits are cost effective deposits that
help the bank to overcome the effect of reduced spread. More of core should be
the mantra of this year. This would enable the bank to post higher profits.
Year of NPA resolution: The qualities of assets decide the quality of profits. It is
the responsibility of every employee to commit himself/herself fully to the task of
increasing the recovery and reduce the NPAs.
RECOVERY

The bank has a comprehensive recovery policy, which covers restructuring/rescheduling

of loans, settlement policy, corporate debt restructuring mechanism, seizure and disposal
of assets under the Securitization Act, and the filing of suits and enforcement of decrees.
The main functions of this department are:

Handling DRT cases: Debt Recovery Tribunals (DRTs) are set up by the Centre
to reduce the non-performing assets (NPAs) of banks and to provide fast disposal of such
cases. The recent Supreme Court judgment makes it mandatory for banks to withdraw all
cases pending before the debt recovery tribunal (DRT) prior to taking action under
Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest (Sarfaesi) Act 2000. The appeals can be made at DRTs only after the assets have
been seized by the lenders. In other words, the Supreme Court judgment does not curb
the lenders' power to seize. As a result of this, the lenders will have control over secured
assets even before the case is heard at a DRT. This will ensure safe upkeep of the assets
and prevent erosion in security value during the litigation as it happens in the case of
those companies that are referred to the Board for Industrial and Financial Reconstruction
(BIFR).

RISK MANAGEMENT

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

measuring and controlling are the major steps in Risk Management. The Bank has been
continuously upgrading and fine-tuning the Risk Management Systems in tune with
international best practices and directions issued by Reserve Bank of India. The bank has
implemented Basel-II as on March 2008 and has complied with the requirements. The
Bank has procured Capital Assessment Model (CAM) from CRISIL to compute capital
for credit risk as per Basel II requirement. The bank has also appointed M/S Ernst &
Young as consultants for operational risk management.
RETAIL MARKETING

The Bank has been keeping a close watch on the market dynamics and
introduction of new products and services are tailored and customized to suit the
customers' requirements. During the year 2007-08, the Bank has launched innovative new
products and services to its existing portfolio. The bank has launched various products
since its inception to cater to its customers needs. These products are: