Syndicate Bank Organisation Study Rajeswari

ORGANISATION
STUDY
Syndicate Bank
INTRODUCTION
Methodology:
Data Collection is a Step in the preparation of project report.

The information is collected in following manner.
Primary sources:
Data is collected by the interacting with bank managers

and officers.
Secondary sources:
The data is collected for report by various records

maintained and standing orders of the banks which
help as lot for preparing this report. A lot of data were
also collected by referring to magazines and news
paper, annual reports of bank.
Objectives:
To study the loans and

advances of the bank
• To study the evaluation and performance of
the bank
* To study the financial

statement
• To study the source of finance

of the bank
To study the history of

the bank
To understand functioning of
bank
ORGANISATION
STUDY
Syndicate Bank
Limitations
* Sample size is limited due to the limited period

allotted for the
survey. * Non availability of adequate and essential
information due to
complex nature of the study. * Inability of the bank personnel
to provide adequate information
due to their pre-occupation with their
work. * Survey is costly and
tedious.
ORGANISATION STUDY
Syndicate Bank
INDUSTRY PROFILE
BANK
A bank is a business center that deals in financial services. A

bank is a place where your money is safe-locked and
a secure place to dispose off your earnings. Banking
service in general includes receiving deposit money,
lending money and processing transactions. The
history of origination of bank goes back a long way.
Since then, banks have influenced the economy of
countries. India has a number of both government
undertaken banks as well as private ones.
Meaning of Banking:
A bank is an institution which deals in money and credit.

Thus, bank is an intermediary which handles other
people's money both for their advantage and to its own
profit. But bank is not merely a trader in money but also
an important manufacturer of money. In other words, a
bank is a factory of credit.
Definition of Banking: According to Section 5(1)(b), “Banking

means accepting for the purpose of lending or
investing, of deposits of money from the public, repayable
on demand or otherwise and withdrawable by
cheques, draft, and order or otherwise".
Definition of Banking Company: Section

5(1)(0), defines
banking company as, “Any company which transacts
the business of banking in India”.
ORGANISATION STUDY
Syndicate Bank
Features of Banking: The following are the basic

characteristics of Banking:
Dealing in Money: The banks accept deposits from the public and
advancing them as loans to the needy people. The
deposits may be different types -current, fixed,
savings, etc. accounts. The deposits are accepted
on various terms and conditions.
LLUT
→ Deposits must be withdrawable: The deposits

made by the public
can be withdrawable by cheques, draft or otherwise, i.e.,
bank issue and pay cheques. The deposits are
usually withdrawable on demand.
Dealing with credit: The bank are the institutions that can
create credit i.e., creation of additional money for
lending. Thus,"creation of credit” is the unique
feature of banking.
Commercial in nature: Since all the banking functions

are carried on with the aim of making profit, it is
regarded as a commercial
institution.
» Nature of agent: Besides the basic functions of

accepting deposits
and lending money as loans, bank possesses the character of an
agent because of its various agency services.
ORGANISATION STUDY
Syndicate Bank
Banking in India
Banking in India originated in the first decade of 18th century with

The General Bank of India coming into existence in 1786.
This was followed by Bank of Hindustan. Both these banks
are now defunct. The oldest bank in existence in India is the
State Bank of India being established as "The Bank of
Bengal" in Calcutta in June 1806. A couple of decades later,
foreign banks like Credit Lyonnais started their Calcutta
operations in the 1850s. At that point of time, Calcutta was
the most active trading port, mainly due to the trade of the
banking activity took roots
British Empire, and due to which
there and prospered. The first fully Indian owned bank
was the Allahabad Bank, which was established in 1865. By
the 1900s, the market expanded with the establishment
of banks such as Punjab National Bank, in 1895 in
Lahore and Bank of India, in 1906, in Mumbai - both of
which were founded under private ownership. The
Reserve Bank of India formally took on the
responsibility of regulating the Indian banking sector
from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader
powers.
The Indian Banking industry, which is governed by the Banking

Regulation Act of India, 1949 can be broadly classified into
two major categories, non-scheduled banks and scheduled
banks. Scheduled banks comprise commercial banks and
the co-operative banks. In terms of ownership, commercial
banks can be further grouped into nationalized banks, the
State Bank of India and its group banks, regional rural
banks and private sector banks (the old/ new domestic
and foreign). These banks have over 67,000 branches
spread across the country.
ORGANISATION STUDY
Syndicate Bank
Stages of development of Banks in

India
Early
history
During the wars
Post
independence
Nationalisation
• Leberalisation
• Current scenario
Early history
At the end of late-18th century, there were hardly any bank in India
in the modern sense of the term. At the time of the
American Civil War, a void was created as the supply of
cotton to Lancashire stopped from the Americas. Some
banks were opened at that time which functioned as
entities to finance industry, including speculative
trades in cotton. With large exposure to speculative
ventures, most of the banks opened in India during that period
could not survive and failed. The depositors lost money
and lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive
domain of Europeans for next several decades until the
beginning of the 20th century.
At the beginning of the 20th century, Indian economy

was passing through a relative period of stability.
Around five decades have elapsed since the India's
First war of Independence, and the social, industrial
and other infrastructure have developed. At that time there
were very small banks operated by Indians, and most of
them were owned by particular
and operated
communities. The banking in India was controlled and
dominated by the presidency banks, namely, the
Bank of Bombay, the
ORGANISATION STUDY
Syndicate Bank
Head Office: Manipal - 576104
Bank of Bengal, and the Bank of Madras - which later on merged to

form the Imperial Bank of India, and Imperial Bank of
India, upon India's independence, was renamed the State Bank
of India. There were also some
exchange banks, as also a
number of Indian joint stock banks. All these banks
operated in different segments of the economy. The
presidency banks were like the central banks and discharged
most of the functions of central banks. They were
established under charters from the British East India
Company. The exchange banks, mostly owned by
the Europeans, concentrated on financing of foreign
trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to
compete with the presidency banks, and the exchange
banks. There was potential for many new banks as
the economy was growing, Lord Curzon had
observed then in the context of Indian banking: "In
respect of banking it seems we are behind the times. We are
like some old fashioned sailing ship, divided by solid
wooden bulkheads into separate and cumbersome
compartments."
Under these circumstances, many Indians came forward to set

up banks, and many banks were set up at that time, and a number
of them set up
around that time continued to survive and prosper even now like Bank of
India and Corporation Bank, Indian Bank, Bank of
Baroda Sdyndicate Bank and Canara Bank.
During the Wars
The period during the First World War (1914-1918) through the end of
the Second World War (1939-1945), and two years thereafter
until the independence of India were challenging for the
Indian banking. The years of the First World War were
turbulent, and it took toll of many banks which simply collapsed
despite the Indian economy gaining indirect
PRASHANTHA SHETTY K, B.B.M. FINAL YEAR REG. NO. 050080049

BHANDARKARS' ARTS & SCIENCE COLLEGE, KUNDAPURA
ORGANISATION STUDY
Syndicate Bank
boost due to war-related economic activities. At least 94 banks in India
failed during the years 1913 to 1918 as indicated in the following table:
Year
1913
1914
1915
1916
1917
1918
No. of Banks | Authorised capital (Rs. Paid up capital (Rs. that failed
In lakh)
In lakh) 12
274
35 42
710
109 11
56 13
231 9
76
25 7
209
4
Post-
independence
The partition of India in 1947 had adversely impacted the

economies of Punjab and West Bengal, and banking
activities had remained paralyzed for months. India's
independence marked the end of a regime of the
Laissez-faire for the Indian banking. The Government of
India initiated measures to play an active role in the
economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948
envisaged a mixed economy. This resulted into
greater involvement of the state in different segments
of the economy including banking and finance. The
major steps to regulate banking included:
In 1948, the Reserve Bank of India, India's central banking
authority, was nationalized, and it became an institution owned by the

Government of India.
•
In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) "to
regulate, control, and inspect the banks in India."
ORGANISATION STUDY
Syndicate Bank
Head Offices Manipal - 578 104
The Banking Regulation Act also provided that no new bank or

branch of an existing bank may be opened without a
licence from the RBI, and no two banks could have
common directors.
However, despite these provisions, control and
regulations, banks in India except the State Bank of
India, continued to be owned and operated by private
persons. This changed with the nationalization of
major banks in India on 19th July, 1969.
SON
Nationalisation
The nationalization of 14 major banks with deposits of Rs. 50

crores or
more in July 1969 was a "historic” and momentous event in the
history of India. Small industrial and business units are
consistently ignored and starved of
continuously and
funds, even though the Government policy was to
encourage small, tiny and cottage and village industries.
Agricultural credit was never seriously considered by banks.
Public funds were used to support anti-social and illegal activities
of the general public. It was for these
against the interest
reasons that the Government took over 14 top
commercial banks in July 1969. In 1980 again the
Government took over another 6 commercial banks -altogether there
are 20 nationalized banks. These are in addition to the State
Bank of India and its associate banks -commonly
called the State Bank of India Group -which were taken
over in 1955.
Branch Expansion: Initially, the banks were conservative and
opened branches mainly in metropolitan cities and other major
cities. Branch expansion gained
PRASHANTHA SHETTY K, B.B.M. FINAL YEAR REG. NO.

050080049 BHANDARKARS' ARTS & SCIENCE COLLEGE, KUNDAPURA
ORGANISATION STUDY
Syndicate Bank
Head Office: Manipal-576 103
momentum after the nationalization of major commercial banks and the

introduction of the Lead Bank Scheme. Table No. 01 shows
the progress of branch expansion of commercial banks:
Branch expansion of all commercial banks:
Table No. 01.
As on
Total No. of Rural
per
Branches
June 30 1969
1,860
Rural Branches Population
as % of the total. bank office
63,800 54
14,150
15,000
22
Branches
8,260
60,650
66,640
1991
32,750
2003
32,270
Deposit Mobilization: Planned economic development,

deficit financing and increase in currency issue have led
to increase in bank deposits. At the same time, banks
have contributed greatly to the development of
banking habit among people through sustained
publicity, extensive branch banking and relatively
prompt service to the deposit mobilization, due partly
to the expansion of a network of bank branches and
partly to the incentives given to savers. The trend of
increase in deposits and credit of scheduled banks is
given in Table No. 02.
Table No. 02.
Year
No. of
reporting
Bank
deposits
Bank
credit
10
ORGANISATION
STUDY
Syndicate Bank
Banks
(Rs.
Crores).
(Rs.
Crores).
820
580
4,690
1950 -5 430
1970-71 73
1990-91 271
2000-2001 297
2003-2004
288
5,910
1,92,540 9,62,620 15,01,930

1,16,300 5,11,430
8,35,380
Since, 1950-51 deposit mobilizations and supply of

credit by banks were growing at a rapid rate
particularly after bank nationalization in 1969.
Growth of deposits in India of all scheduled commercial banks was as
follows:
1951 -1971 (20 years) -700% or 7 times. 1971

-1991 (20 years) - 3,260% or
32.6 times. 1991 -2004 (12 years)
-780% or 7.8 times.
Liberalisation
In the early 1990s the then Narasimha Rao government

policy of liberalisation and gave licences
embarked on a
to a small number of private banks, which came to be
known as New Generation tech-savvy banks, which
included banks such as UTI Bank (the first of such new
generation banks to be set up), ICICI Bank and HDFC
Bank. This move, along with the rapid growth in the
economy of India, kickstarted the banking sector in India,
which has seen rapid growth with strong contribution
from all the three sectors of banks, namely, government banks,
private banks and foreign banks.
ORGANISATION STUDY
Syndicate Bank
sunriscic
a
AE)
The next stage for the Indian banking has been setup with the proposed
relaxation in the norms for Foreign Direct Investment, where all
Foreign Investors in banks may be given voting rights which
could exceed the present cap of 10%, at present it has
gone up to 49% with some
restrictions.
The new policy shook the Banking sector in India completely.

Bankers, till this time, were used to the 4-6-4 method
(Borrow at 4% Lend at 6%;Go home at 4) of
functioning. The new wave ushered in a modern
outlook and tech-savvy methods of working for
traditional banks. All this led to the retail boom in India.
People not just demanded more from their banks but also
received more.
Current scenario
Currently (2007), overall, banking in India is

considered as fairly mature in terms of supply,
product range and reach-even though reach in rural
India still remains a challenge for the private sector and
foreign banks. Even in terms of quality of assets and capital
adequacy, Indian banks are considered to have clean,
strong and transparent balance sheets-as compared to
other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated
policy of the Bank on the Indian Rupee is to manage
volatility-without any stated exchange rate and this has
mostly been true.
With the growth in the Indian economy expected to be strong for

some time-especially in its services sector, the
quite
demand for banking services-especially retail banking,
mortgages and investment services are
ORGANISATION STUDY
Syndicate Bank
Head Office: Manipal - 576 104
expected to be strong. M&As, takeovers, asset sales and much

more
action (as it is unravelling in China) will happen on this front in India.
Currently, India has 88 scheduled commercial banks

(SCBs) - 28 public sector banks (that is with the
Government of India holding a stake), 29 private banks
(these do not have government stake; they may be
publicly listed and traded on stock exchanges) and 31
foreign banks. They have a combined network of over
53,000 branches and 17,000 ATMs. According to a
report by ICRA Limited, a rating agency, the public sector
banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks
holding 18.2% and 6.5% respectively.
As far as the present scenario is concerned the banking industry in

India is in a transition phase. The Public Sector Banks
(PSBs), which are the foundation of the Indian Banking
cent of total banking
system account for more than 78 per
industry assets. Unfortunately they are burdened with
excessive Non Performing assets (NPAs), massive
manpower and lack of modern technology. On the other
hand the Private Sector Banks are witnessing immense
progress. They are leaders in Internet banking, mobile
banking, phone banking, ATMs. On the other hand
the Public Sector Banks are still facing the problem of
unhappy employees. There has been a decrease of 20
percent in the employee strength of the private sector in the
wake of the Voluntary Retirement Schemes (VRS). As far as
foreign banks are concerned they are likely to succeed
in India.
PAC
Indusland Bank was the first private bank to be set up in India. IDBI,
ING Vyasa Bank, SBI Commercial and International Bank
Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank
of Rajasthan Ltd etc are some Private Sector Banks.
Banks from the Public Sector include Punjab
13
ORGANISATION STUDY
Syndicate Bank
Head Orlice: Manipal -576 104
National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad

Bank,
Andhra Bank etc.
ANZ Grindlays Bank, ABN-AMRO Bank, American

Express Bank Ltd, Citibank etc are some foreign banks
operating in India
Diagram: Shows the Banking Structure in
India:
Reserve Bank of India

(RBI)
Scheduled Commercial
Banks
Scheduled Co-operative
Banks
Regional Rural Banks in India

Public Sector Banks
Foreign Banks in India
Private Sector Banks
Scheduled Urban Cooperative Banks
Scheduled State Cooperative Banks
Nationalized
Banks
SBI &
Its Associates
Old Private Banks
New Private Banks
14
ORGANISATION STUDY
Syndicate Bank
Indian Banking
Structure:
The banking system in India can be broadly divided into three

viz. the central bank of the country known
categories,
as the Reserve Bank of India (RBI), the commercial banks
and the co-operative banks. The Reserve Bank of India is the
supreme monetary and banking authority in the country and has
the responsibility to control the banking system in the country. It
keeps the reserves of all scheduled banks and hence is
known as the "Reserve Bank”. Below figure shows the
structure of Indian banking.
ET
AS
Scheduled and Non-Scheduled Banks:
Under the Reserve Bank of India Act, 1934, banks were

classified as scheduled banks and non-scheduled banks.
The scheduled banks are those which are entered in the
Second Schedule of RBI Act, 1934. Such banks are those
which have a paid -up capital and reserves of an aggregate
value of not less than Rs. 5 lakhs and which satisfy RBI that
their affairs are carried out in the interests of their depositors. All
commercial banks --Indian and foreign, regional rural banks
and State co -operative banks -are scheduled banks. Non-
Scheduled banks are those which have not been include in
the Second Schedule of RBI Act, 1934. At present, there
are only three non-scheduled banks in the country.
Scheduled banks are divided into Commercial Banks
and Co-operative Banks. Commercial banks are based
on profit, while co-operative banks are based on co-
operative principle.
Commercial banks have been in existence for many

decades. They mobilize savings in urban areas and make
them available to large and
15
ORGANISATION STUDY
Syndicate Bank
Head Office: Manipal - 576 104
small industrial and trading units mainly for working capital

requirements. After 1969 commercial banks are
broadly classified into nationalized or public sector
banks and private sector banks. The State Bank of
India and its Associates banks along with another 20
banks are the public sector banks. The private sector
banks include a small number of Indian scheduled banks
which have not been nationalized and branches of foreign
banks operating in India -commonly known as foreign
exchange banks. The Regional Rural Banks (RRB's) came
into existence since the middle of 1970s with the specific
objective of providing credit and deposit facilities
particularly to the small an marginal farmers,
agricultural laborers and artisans and small
entrepreneurs. The Regional Rural Banks have the
responsibility to develop agriculture, trade, commerce and
industry in the rural areas. The RRB's are essentially
commercial banks but their area of operation is limited
to a district.
16
ORGANISATION STUDY
Syndicate Bank
Sri VAMAN S. KUDVA
Dr. T. M. A. PAI
Sri UPENDRA ANANTH PAI
17
ORGANISATION
STUDY
Syndicate Bank
COMPANY PROFILE
Brief History
Syndicate Bank was established in 1925 in Udupi, the abode of

Lord Krishna in coastal Karnataka 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 - who shared a strong commitment to
social welfare. Their objective was primarily to extend
financial assistance to the local weavers who were
crippled by a crisis in the handloom industry through
mobilising 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.
SYNDICATEBANK, HEAD OFFICE,
MANIPAL
ORGANISATION STUDY
सिटिव Syndicate
Bank
TECEM OD NEESI
NDERTLING
Head Office: Manipal -576 106
The first branch of the bank started its operations in the year 1928 at
Brahmavar in Dakshin Kannada District. By 1937, it had secured its

membership as a clearing house at Mumbai. The primary
objective of the business was to extended financial
assistance to local weavers. Initially, the bank collected as
low as two annas from the door steps of the depositors
daily through its agents. This type of system wherein the
agents of the bank come doorsteps to collect deposit is still
prevailing in India and is referred to as the Pigmy Deposit
Scheme.
IS
As time progressed, twenty banks merged with the Canara

Industrial and Banking Syndicate Limited including the
Maharastra Apex Bank Limited and Southern India Apex
Bank Limited. The name of the bank was changed to
Syndicate Bank Limited in the year 1964 and the
head office of the bank was shifted to Manipal. The
bank expanded its operations not only on the domestic
front but also overseas. It took over Al Shabei Finance and
Exchange Co. in Doha (1983) and Musandam Exchange
Co. in Muscat (1984). By 1978, it opened its 1000th branch
at Hauz Khas, Delhi. Currently it has over 2125 branches out of
which 1523 are offering corebanking-e-banking services under
anywhere-anytime anyhow
banking.
Syndicate Bank sponsored the first regional rural

bank in India by name Prathama Grameena Bank.
The stocks of the Syndicate Bank are listed on
Bombay Stock Exchange, National Stock Exchange,
Mangalore Stock Exchange and Bangalore Stock
Exchange.
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
19
PRASHANTHA SHETTY K. B. B. M. FINAL YEAR REG. NO.
050080049 BHANDARKARS' ARTS & SCIENCE COLLEGE,
KUNDAPURA
ORGANISATION STUDY
Syndicate Bank
and understanding the grassroot 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.
+
1
+
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.
Nature Of Business
Carried:
Syndicate bank being a major public sector banks in India, is

well known for its banking operations that is, it provides
various services and products to the customers by
means of ATM, Debit Card, Credit Card, Internet Banking
as the services and Retail Credit Scheme, Personal
Banking Loan Scheme, Deposit Schemes at CBS Branches,
and Term Deposit Schemes as it products. Other than the
banking operation it also provides Foreign Business,
Mercantile Banking, Insurance Banking, General
Banking, and Social Baking to the various customers in
India as well as in abroad.
ORGANISATION
STUDY
Syndicate Bank
PRODUCTS AND SERVICES PROFILE
(A). Retail Credit Scheme:
eurs.
1. SyndVidhya -Education Loan. 2. SyndLaghuU

dyami -Loans for Entrepreneurs. 3.
SyndVypar - Loans for Traders. 4.
Syndswarna-Loans on Gold. 5.
SyndPigmy-Loans for Pigmy
Depositors. 6. SyndRent -Loans against
Rent receivables. 7. SyndUdyog -Loans for
Entrepreneurs. 8. Synd Senior- Personal
loan for pensioners 9. SyndVahan -For
Purchase of Vehicles. 10.SyndSuvidha -For
Purchase of Consumer Durables.
11.SyndKisan -Loan for agriculturist. 12.
SyndSaral -Contigency Loans.
a. For Salaried Class.
b. For Non-Salaried
Class.
C. All Purpose Credit Schemes. 13. SyndVidyarthi-a stand
by overdraft facility for students of
professional
courses
(B). Deposit Schemes at CBS

Branches:
1. Premium Saving Account (sweep out, sweep in facility).

2. Special Premium Savings Accounts. 3.
Syndicate Floating Rate Deposit Scheme.
ORGANISATION STUDY
Syndicate Bank
(C). Term Deposit Schemes:

N
1. Fixed Deposit (FD). 2. Social
Security Deposit (SSD). 3.
Vikas Cash Certificate
(VCC). 4. Cumulative Deposit.
5. Syndicate Suvidha
Deposit. 6. Quick Money
Deposit (QMD). 7. Kisan
Pragathi Deposit. 8. Senior
Citizen's Security Deposit. 9.
SyndSamanya
Services:
1. Tele-Banking. 2. Internet Banking. 3.

“Any Branch Banking”. 4.
Multi City Accounts. 5. Synd
Bill Pay. 6. Online Collection of
Direct Taxes. 7. Online Railway
Ticket Booking. 8. Western
Union Money Transfer.
ORGANISATION STUDY
Syndicate Bank
Details of Products and Services

AA
(A). Retail Credit
Scheme:
(1). SyndVidhya -Education Loan:
Purpose: Providing financial support to deserving

/meritorious students for pursuing higher education in
India and abroad. Eligibility: All students studying
specified courses in India or abroad. Nature of facility: DL
or OSL.
Quantum: > For studying in India - maximum of

Rs.7.5 Lac.
► For studying abroad - maximum of Rs.15 Lac Security:
Up to
Rs.4 Lac - guarantee of parent/guardian (third party
guarantee not required).Above Rs. 4 Lac- collateral
security not less than 100% of loan amount with
stipulated margin is required. Guarantor: Up to Rs.4 Lac-
guarantee of parent/guardian-(third party guarantee not
required). Above Rs.4 Lac-guarantee of
parent/guardian and a suitable third party guarantee
acceptable to the bank. Repayment Holiday: Course
period plus 1 year or 6 months after getting job, whichever is
earlier? Repayment period: Maximum of 5-7 years
after completion of repayment holiday.
(2). SyndLaghuUdyami - Loans for Entrepreneurs:

Purpose: To meet the credit requirement of small/medium
entrepreneurs, traders, small business, and self-
employers/professionals. Eligibility: Existing customers who
satisfy certain criteria.
Quantum of Loan: Maximum of Rs.5 Lac
Guarantee: Suitable third parties guarantee acceptable to the bank.

PRASHANTHA SHETTY K. B.B.M. FINAL YEAR
REG.NO.050080049 BHANDARKARS' ARTS & SCIENCE
COLLEGE, KUNDAPURA
23
ORGANISATION STUDY
Syndicate Bank
Validity: Three years. Yearly review is to be done by the branch on the

basis of ADV 85. In case of borrower seeks enhancements, and
then regular proposal is to be obtained.
(3). SYNDVYAPAR- LOANS FOR TRADERS:
Purpose: To meet the credit limit of all types of traders. Eligibility: All
traders. Quantum of loan: Maximum of Rs.25 Lac. Security:
Mortgage of property/pledge of NSC/KVP/ LIC Policy etc.
The stock in trade also is to be hypothecated. Guarantee:
Third party not compulsory. The owner of the property should
join the transaction as guarantor (If the property is not
owned by the borrower). Margin: 15% to 40%,
depending upon the security. Repayment: Renewal
once in 2 years.
(4). SYNDSWARNA- LOANS ON GOLD: Purpose:

Jewel loans can be granted for all purposes coming
under priority sectors as well as non -priority sectors.
Eligibility:
► The borrower should be agriculturist if he is seeking
loan for
agriculture and allied purposes. Jewel loans to all others
will be classified as non-priority sectors. Jewel loans
shall be generally arranged to customers who are
properly introduced to the bank and only through
branches having the services
of approved jewel appraisers. Security:
Gold ornaments of 22-carat purity.
24
ORGANISATION
STUDY
Syndicate Bank
Quantum of loan: Maximum loan available depends on income

generation capacity or the gold value per gram declared
from time to
time.
Repayment period: Maximum of 12-24 monthly

installments along with
interest.
ID
(5). SYNDPIGMY-LOANS FOR PIGMY DEPOSITORS:

Purpose: Any genuine credit requirements of PD
to meet any contingencies. Eligibility: Pigmy depositors
having PD account, must have completed 2 years with
regular contribution. Loans can be sanctioned only at those
branches where pigmy scheme is in operation.
Quantum: 3 times the balance in Pigmy Deposit
account or Rs.50000/-,
whichever is less.
Repayment: > OD
H
renewable on yearly basis.
> DL to be repaid in installment not exceeding 35 EMI's.
Rate of Interest:
For loans /OD sanctioned /released up to: 31-03-
03; -15% P.a. (fixed). For loans /OD sanctioned
/released up to: 01-04-03; -14% P.a. (fixed).
(6). SYNDRENT- LOANS AGAINST RENT RECEIVABLES:

Purpose: Any genuine business /personal credit
requirement excluding for speculative / prohibited
purposes as per the credit policy guidelines in
force.
2
5
ORGANISATION STUDY
face
Syndicate Bank
Eligibility: Bonafide owners of commercial or residential

property, legally let out on lease/rental agreement to reputed
institutions/companies. Quantum: Maximum of 75% of rent
receivable (less TDS) by owner for whole or part lease period
not exceeding 60 months.
(7). SYNDUDYOG- LOANS FOR

ENTREPRENEURS: Purpose: Scheme for
financing small and medium entrepreneurs. Target
Group: Manufacturing units, trading units, Service
entities. Eligibility:
► Credit requirement of the applicant party/unit shall not be
more than
Rs.50 Lac.
► The annual sales/revenue turnover of the applicant

party/unit shall not
be more than Rs.250 Lac. Nature of facility: Overdraft/loans, Bill
limits, LCs / BGs offered in one package at competitive
rates within a predetermined overall limit (not
exceeding Rs.50 Lac).
(B). Personal Banking Loan
Scheme:
(1). SYNDVAHAN- VEHICLE LOANS Purpose: Loan to purchase

new/old 4-wheeler and new 2-wheeler by individuals.
Eligibility: Individuals having minimum annual income of
Rs.50,000/ for 2-wheeler, Rs.1,00,000/-p.a. for 4-wheeler.
26
ORGANISATION
STUDY
Syndicate Bank
(2). SYNDSUVIDHA- CONSUMER DURABLE LOANS:
Purpose: To purchase consumer durables like TV, Fridge, washing

machine, other audio /video equipment computer
including printer etc. Eligibility: Salaried / non-
salaried class. Repayment: Not more than 60 equated monthly
installments. Rate of Interest: (compounded monthly).
Guarantee: Suitable third party.
(3). SYNDKISAN- LOANS FOR AGRICULTURISTS:
Purpose: To meet any genuine credit requirements / to purchase

consumer
durables.
Eligibility: Agriculturists clean loans may be sanctioned to
existing customers only who have availed some
facility with the bank and have mortgaged the
property. Quantum:
Demand loan: 50% of average gross annual income or Rs. 1 lacs,

whichever is less, where proof of income from revenue authority
is submitted. When proof is not available the manager must
make the party's assessment of income. In such event,
quantum of loan is restricted to 50% of the gross annual income
or Rs. 0.25 lacs, whichever is less.
Repayment: Not exceeding 3 years. Guarantor: Suitable third

parties guarantee acceptable to the bank.
(4). SYNDSARAL-CONTINGENCY LOANS:
(a). Salaried Class: Purpose: To meet any genuine

personal credit requirements. Nature of Facility:
Demand loan and ODC (for top executives only).
ORGANISATION STUDY
Syndicate Bank
Eligibility: Permanent employees of central state governments

/departments /reputed public sector undertakings / companies
/firms having sound financial / teachers, professors, staff of
schools and colleges and pensioners. Quantum: 12 months'
gross salary, subject to maximum of Rs.3 lacs where salary is
not credited at the branch. Repayment: Not exceeding
60 EMIs. Rate of Interest: (compounded monthly). Loans -
PLR/PTLR + 2.5% P.a. and ODC for top executives -PLR +3%
P.A. Guarantor: Suitable third parties guarantee
acceptable to the bank. (b).Non salaried class: Purpose:
To meet any genuine personal credit requirements.
Eligibility: Non-salaried persons such as Doctors,
Engineers, Architecture, Lawyers, Consultants,
Businessmen etc. Quantum: Subject to maximum of
Rs. 5 lacks. (c). All Purpose: Purpose: To meet any genuine
credit requirements.
HOUSING
LOAN
The banks has under restriction that they have to lend 40%
of the advances to priority sector advances consisting of:
small route transport operation, small scale industries
professionals or self employed, small business, retail
trade, agriculture and export. Housing loan has
become cheaper as compared to earlier years. This
is because of stiff competition between the banks
The banks are required to lend at their prime lending rate but they don't lend
at this rate, this is because the RBI has given some liberty to
the nationalized banks in fixing their own interest rate. The PLR is
based PRASHANTHA SHETTY K. B.B.M. FINAL YEAR
REG.NO.050080049
28
BHANDARKARS' ARTS & SCIENCE COLLEGE, KUNDAPURA
ORGANISATION STUDY
Syndicate Bank
upon the low cost deposits the bank have, they can grant loan at lesser
interest.
In India the default in housing loan is very meger, and people in

India are also sentimentally attached to the house which
they own/construct by them and repayment are generally
regular. Banks have taken more interest to finance housing
loans because:
1. it is secured advance with sufficient margin 2. the

advance up to 10 lack is treated as priority sector
advances
3. the risk weight age s only 50% Moreover the interest up to 1.50
lack is considered as for tax exemption. The have also tie up
arrangement with the developer for the construction
of an apartment is treated as one account. Following

is the
common feature of most of all housing loan scheme
of different nationalized banks like Syndicate
bank(SYNDNIVAS), Vijaya bank(VIJAYA HOME
LOAN)
Purpose: -Construction/purchase of existing/new

house/flat/purchase of site for house construction. -
For repairs/renovation/modification in existing
house.
TIS
Eligibility: All salaried / self-employed / business
persons / agriculturists / Pensioners with regular
income.
Quantum of loan: The quantum of loan is fixed on the basis of total

project cost less prescribed margin (25% or
30%) or 72 months gross salary in case of salaried
class of borrowers
29
ORGANISATION STUDY
Syndicate Bank
Rate of Interest: The borrower will have a choice of either fixed
interest rate or Floating interest rate. Floating interest rate will be

linked to PLR, i.e. as & when PLR is revised, interest rate will
also stand revised.
Repayment: Flexible repayment period options are available.

Equated monthly installments for repayments
are devised to enable
the borrowers to structure and planned the
repayment of the loans.
• Security: Mortgage of the property to be
financed
Defferences between housing loans
given by the Syndicate bank(SyndNivas)
and Vijaya bank (Vijaya Home loan)
Point of
differences
SynndNivas
Vijaya Home
Loan
Purpose
For acquiring a new house or For purchase of old house existing house not more than
|/flat of age of 30 years and 25 years old
below.
Eligibility
For salaried class, applicant In case of salary income
should have completed 5 | alone is considered for
years of service and the deciding the quantum of
remaining period of service loan, such salaried persons
left shall not be less than should be in permanent
5years
service and not
probationers: Persons
nearing superannuation getting retirement benefits sufficient to
cover the Loan applied can
also be considered.
30
ORGANISATION STUDY
Syndicate Bank
Quantum
For Salaried persons : Minimum loan amount is Rs.
1.00 Maximum of 72 months lakh Maximum – Any amount -
on need based as per the cost less gross salary
(including salary
stipulated margin subject to loan of spouse)
entitlement. For salaried class, applicant In case of
Repairs/Renovation -
completed 5 maximum should have
is Rs. 10Lakhs years of service and
the remaining period of service left shall not be less
than 5 years.
Margin
25% of total project cost for 20% of the cost in
general. construction/purchase of new The cost
shall include Land flat or house up to 5 years
cost, Stamp duty, old.
Registration charges, 30% for acquiring house
Fixtures like Ward Robes, which is above 5 years
old.
Pelmets, Dressing
Mirror,
Kitchen cabinets / racks, 30% of the estimated cost
of Geysers etc. addition/extension/repairs/re novation
Processing
charges
Rs.500/- per lac with a Up to Rs.2 lakhs Rs. 112/ minimum of Rs.1000/-
at Above Rs. 2 lakhs to Rs. 1 present. (Processing
charges Crore Rs. 112./- per lakhs are subject to
change from
or part thereof time to time)
Above Rs1 Crore Rs
11,224 for Rs. 1 Crore plus
Rs. 140/ per Rs. 1 Lakhs
or part thereof
31
ORGANISATION STUDY
Syndicate Bank
Rate of interest
Synd-
Nivas
Repayment
Period
Fixed rates (%) Up to 5
years
11.50 Over 5
years & upto 10 years
12.00 Over 10 years
& upto 20 years Category abolished Over
20 years & upto 25 Category
abolished
Floating rates (%)
BPLR-3.0
BPLR-2.50
BPLR-2.25
BPLR-2.00
years
Vijaya Home
loan
Period
Existing and for loans up
to Rs.20.00 Lakhs
Floating Fixed
9.25%
9.50% 9.75% 10.00%
Revised and for loans
above Rs.20.00 Lakhs
Floating Fixed 10.00%
10.75% 10.50% 11.25%
Up to 5 years
Above 5 years
to 10 years Above
10 to 15
10.00%
No fixed
10.75%
No fixed
vear's
Beyond 15 years
10.50%
No fixed
11.25%
No fixed
Findings
As Housing loans comes under Priority sector lending, the feature

of housing loan given by different nationalized banks are
similar. These banks charging interest to their Housing
loan products even less then their Prime Lending Rate
When we compare the housing loans of two
nationalised banks i.e. Syndicate bank and Vijaya bank
we find lot of similarities in Purpose of lending, Eligibility,
Quantum of loan, Security, Rate of interest, and
Repayment is concerned. As for as difference is concerned
The difference between these two policy is minor, like in
case of renovation of house syndicate bank give loan
only for the period 25 years where as Vijaya bank it
is 30
years
•
In case of eligibility of housing loan for salaried
class of customer should complete at least 5 years of
service But such restriction is not
32
ORGANISATION STUDY
Syndicate Bank
Head Orlice: Manipal -576 104 Your faithfuil & friendly financial partner
there in case of vijaya bankIn simple Housing loans of Vijaya

liberal as compared to Syndicate bank
C). Deposit Schemes at CBS

Branches:
(1). Premium Savings Account (Sweep in, Sweep out

facility):
Features
:
► All persons associations etc., who are eligible to
open SB accounts can
open accounts under this scheme.
> Average monthly balance of Rs. 10,000/- to be maintained in

the
premium saving
account.
► Balance available in the account in excess of Rs.
10,000/- on any day
gets automatically swept out into a fixed deposit for 180
days in units of Rs. 1000/
No penalty is charged for breaking the fixed deposit prematurely.
However, the amount swept in earns interest for the period
run at the application rate.
(2). Special Premium Savings

Accounts:
Features:
► All persons associations etc., who are eligible to open SB

accounts can
open accounts under this scheme.
► Rs. 20,000/- maintained in "Special Premium Savings

Account".
33
ORGANISATION STUDY
Syndicate Bank
The balance available in the account in excess of Rs. 20,000/- on

any day will be swept out into a fixed deposit in units of Rs.
1000/- for one
year and one day. → The interest rate applicable for the amount so
swept in will be the rate
applicable for the period for which it was held in the term
deposit
account.
No penalty is charged for breading the FD

prematurely.
► Rs. 100/- per month is levied as service charges

whenever the monthly
average balance in the special saving account
goes below Rs. 20,000/-.
(3). Syndicate Floating Rate Deposit

Scheme:
The scheme has been launched from 01 -01-2003 and the deposits are
accepted at Syndicate e-banking branches.
Features:
(a). Amount of deposit: Minimum deposit acceptable under this scheme

is fixed at Rs. 100/- lacs and in multiples of Rs. 1/- lac. (b).
Period of deposit: one year.
34
ORGANISATION STUDY
Syndicate Bank
D). Term Deposit Scheme:
(1). Fixed Deposit (FD):.
Amount of deposit: Opened with minimum of Rs. 50/- and

above. FD can be
opened with minimum of Rs. 1000/-.
Period of deposit: Minimum period of 15 days and maximum of
120 months. Branches are permitted to accept bulk deposits
of Rs. 25 lacs and above up to Rs. 100 lacs for a period of
7-14 days. FD's can also be accepted for any period in
multiples of complete months or for incomplete months like
13 months and 12 days etc. Where a court directs the bank to
do so, the branch may accept the deposits for any period
beyond 120 months and also for any amount even if it is
less than Rs. 50/ Options regarding payment of interest:
► In case of FD for 6 months and below, the
interest is payable on
maturity.
► In other cases, the depositors is having the option

of claiming interest
on quarterly or half yearly
rests.
Monthly interest can be availed at discounted rates.
Other features:
► Nomination facility is
available.
► Premature closure is permitted to subject
to penalty norms.
(2). Social Security Deposit

(SSD):
Amount of deposit: A SSD account may be opened with a

minimum of Rs. 1000/- and in multiples of Rs. 100/
35
ORGANISATION STUDY
सिटिि Syndicate Bank
Head Office: Manipal - 576104 Your faithful & friendly financial partner
Period of deposit: SSD can be opened for a minimum period of one year. SSD's
are opened only in completed quarters subject to a
maximum of
ten years. Payment
of Interest: The depositor is free to opt,
any one of the following regarding the payment of interest.
> Monthly Interest: Interest is paid at the end of every calendar
month at
discounted value.
► Quarterly Interest: Simple interest accruing at the end of each

quarter will be paid. Calculation of Interest:
Monthly Interest at Discount rate
=
Amount of deposit X Rate of
interest
(1200 + Rate of interest) Ex: At 12%
for Rs. 10,000/- discounted monthly interest is: (10,000 X
12)/1212 =99.01. Branches refer Master Charts on interest
rates for payment of interest at discounted rates.
ikas Cash Certificate:
The amount accepted under this scheme grows constantly with

interest compounded on quarterly basis and the accrued
interest will be paid along with the principal amount of
the deposit on maturity. Amount of deposit: Amount in
multiples of Rs. 100/- is accepted. Period of deposit:
Deposit will be accepted for a minimum period of 6 months
and in completed quarter beyond 6 months subject to
maximum of 120 month. Deposits can also be
accepted for odd periods like one year
one day, two year one day etc.
36
ORGANISATION STUDY
Head Offices Manipal - 578 104 Your faithful & friendly financial partner
Payment of Interest: Interest on the amount of deposit is

compounded at quarterly rests and paid along with principal
on maturity. The maturity value for different periods are
given in the tables supplied in this regard. Deduction of Tax at
source on cash certificate: Branches shall affix a seal
on the cash certificate mentioning "Maturity value is subject to
provision of tax laws". There is no breach of contract here, as it
is the land which has altered the contractual terms.
4). Cumulative
Deposit:
In this scheme, deposits into the account are made in monthly

installments for a stipulated period on expiry of this
period; the total amount of installments deposited is
rapid with interest compounded on quarterly basis.
Amount of deposit: Uniform monthly installments of
Rs. 10/- or in multiples thereof. However, with effect from
01-04-03 the minimum monthly installments stands
revised to Rs. 100/- and thereafter in multiples of Rs.
10/-. Period of deposit: Minimum period of 12 months and
maximum of 120 months in completed quarters.
(5). Syndicate Suvidha

Deposit:
A special deposit scheme, under which, the depositor can withdraw

a part of the fixed amount at times of need. Amount of
deposit: Rs. 10,000/- and above in multiples of Rs. 1000/-.
Period of deposit: Minimum of 15 days and maximum
of 120 months.
37
ORGANISATION STUDY
Head Orlice: Manipal -576 104 Your faithful & friendly financial partner
Rate of Interest: As applicable to the term deposits at the time of opening
the deposit account.
Interest payment: Simple interest is payable at quarterly

intervals at the contracted rate. For all the accounts
opened prior to 27-01 -1998, interest is payable at half
yearly intervals. Partial Withdrawal:
► The depositor is at liberty to withdraw partially in
multiples of Rs.
1000/
There is no restriction regarding frequency and number of

withdrawals.
► Withdrawals are recorded in the deposit ledger and also on
the deposit
receipt.
→ No penalty is charged on partial withdrawals

(w.e.f. 01 -11 -1998).
available.
► TDS norms are
applicable.
(6). Quick Money
Deposit:
This is a term deposit scheme with overdraft facility which

ensures availability of funds to the account holder without
necessitating another visit to the branch. Amount of deposit:
Rs. 25,000/- and above in multiples of Rs. 1000/-. Period of
deposit: Minimum of one year and maximum of five years
deposits can be accepted for incomplete quarters also.
Interest Rate: As applicable for term deposits, compounded
quarterly. For incompleted quarters, interest shall be
calculated on the basis of 365 days
a year.
38
ORGANISATION STUDY
Your faithful & friendly financial partner
(7). Kisan Pragathi

Deposit:
Kisan Pragathi Deposit is a credit linked savings cum term

deposit scheme designed for agricultural clientele.
These deposits can be opened by any agriculturist
solely or jointly with his wards.
Interest:
→ Rate of interest shall be 1% less than
domestic term deposit rates.
Interest is calculated on monthly
product basis.
11 III
Other Terms:
► TDS norms are

applicable.
► Nomination facility is available and
credit facility.
(8). Senior Citizen's Security

Deposit:
This deposit scheme with value added features was introduced by

the bank for the benefits of senior citizen's who are of
above the age of 60 years including retired employees of
the bank, valid proof of age to be produced by the depositor.
Amount of Interest: Minimum of 1,000/- and in multiples of Rs.
1000/-. Period of deposit: Minimum of 12 months and
maximum of 120 months. Rate
of Interest: Higher rate of
0.50% over the normal rates applicable to domestic
term deposits. Interest is payable monthly (at discounted
rate) or quarterly as desired by the depositors. Loans on
deposits: Available up to 75% of the deposit amount. Other
Features:
available.
> TDS norms are applicable.
39
ORGANISATION STUDY
Services:
(1). Tele -Banking: Round the clock access regarding account

details, balance enquiries, transfer of funds can be
made from one account to another and utility bills like
electricity, telephone, etc., can also be paid.
(2). Internet Banking: The bank is accessible from your home,

office or
while you are traveling. A login password and transaction
password has to be obtained, with these passwords you can
login and (a). View account transactions. (b). Effect transfer of
funds. (c). Open a Term Deposit. (d). Place requests for issue
of Cheque books, demand drafts, etc.
(3). Any Branch Banking: Banking is no longer restricted to the

physical boundaries of your Branch premises. You can
(a). Get cash payment of your Cheque up to a limit in
any other CBS Branches. (b). Get collection of your
cheques. (C). Purchase DDs, MTs, etc. or get online
transfer of funds.
(4). Multi City Accounts: These are accounts which can be

operated in various CBS centers. You can opt for one
of the five variant of the accounts depending on the
minimum average balance. (a). Synd -Silver -Current
Accounts. (b). Synd -Gold-Current Accounts. (c). Synd -
Platinum -Current Accounts. (d). Multi-City - Corporate
with sweep -in and sweep-out facility from OD account
to current account.
40
ORGANISATION STUDY
These Multi-City Cheques can be debited at any of our CBS network

branches. Other transactions like purchasing DDs, fund
transfer, etc.
could be done for reasonable
charges.
(5). Synd Bill Pay: A hassle free utility payment product

wherein utility bills can be paid directly by the bank. The
modes of payment by registering with the Bank -all for no
charges. (a). Autopay-where the Bank pays the bill on
due date. (b). Online pay-where you can view the bills that are
due and authorize payment online. (6). Online Collection
of Direct Taxes: Our Bank collects Central Board
Direct Taxes from the customer at the selected
branches identified for this
e.
purpose.
(7). Online Railway Ticket Booking: The bank has joined hands with
Indian Railway Catering & Tourism Corporation Ltd.
(IRCTC) to offer online booking of railway tickets for
all Internet-banking (Syndinet) Customers of their
bank. This facility is offered to the customers absolutely
free of cost.
DT
(8). Western Union Money Transfer: The bank has signed MoU
with M/s Kuoni Travel (India) Pvt. Ltd. Agent for M/s
Western Union Network (Ireland) Ltd to make
payments of Western Union Money Transfer remitted by
NRIs from foreign countries.
ORGANISATION STUDY
Area of Operation -Global / National /

Regional:
Syndicate bank is a major public sector bank -serves over

19millon Clinteles through 2125 branches spread over 20
states and four union territories with a branch at
London and a workforce of 28000. The global business
of the bank exceeds 131473 crores. It is known for mass
banking through its innovative schemes ranging in scope
from small
savings and social lending to corporate finance and foreign
business.
Particulars 1 Rs. In crores L Growth in % Global business

131473
44.03 Global
Deposits
78634
46.64 Global
Advance
52839
40.31 Net Profit
716
33.47 Net Interest
Income 2150
14.31
Branches 2125 CBS Branches |

1508 ATM's
701 Clientele
19 million Networth Rs 3623
crores
42
ORGANISATION STUDY
Ownership Pattern: Syndicate Bank is a Govt. of India

undertaking. This has more than 66% of share
capital
SI.
Categor
y
No. of Shares % of share No.
held
holding. A
Promoter's Holding
Promoters Government of India
346968282 66.47 Foreign Promoters
NIL Persons acting in
concert
NIL Sub Total 3469568282 66.47
2
B
Non-Promoter Holding
3
13400770
2.57
18350002
3.52
Institutional Investor (a). Mutual Funds and UTI (b). Banks,
Financial Institutions, Insurance
Companies (Central/State Govt. Institutions / Non-
government
Institutions). c). FII's.
Sub Total Others (a). Private
Corporate Bodies (b). Indian Public (C).
NRIs/OCBs (d). Any Others
Sub Total
63894695
95645467
12.24
18.33
5952793
71425784 |
1136130
839826
79354533
1.14 13.68 0.22
0.16
15.20
Grand 521968282
100.00
Total
Competitors Information: For any industries there are

number of competitors who themselves try to
emerge with innovative products and services, to
compete with other industries. They provide products and
services in order to satisfy the customers, which are economy
to their purchasing habits. Likewise
43
KUNDAPURA
ORGANISATION STUDY
fiisaidia
Syndicate Bank
Syndicate Bank is also having its competitors like all Public

SectorsBanks in India, and Private Sectors Banks,
Foreign Banks etc. The main competitors of Syndicate
Bank are SBI and its Associates, Punjab National Bank,
Canara Bank, Corporation Bank, Unit Trust of India (UTI),
Indian Overseas Bank etc. Private sector banks like
ICICI, IDBI, Centurian bank also give competition.
Infrastructural Facilities:
Syndicate bank has following infrastructure

facilities
1. CBS
Branches 2.
ATM's
3. Total Branch Mechanization(TBM's) 4. Video Conferencing

in HO, RO, CO, 5. Internet facility 6. Data
warehousing and mining 7. Real Time Gross
Settlement(RTGS) in CBS branches 8. Foreign
exchange business 9. Treasury and Investment
10.Credit and Debit card 11. Security arrangement
12. Close circuit TV and Time clock facility
13.communication facility with cash van
during cash remittance 14. Installation of Hotline
with currency chest 15. Strong and safe room for
currency chest 16. Burglar alarm system in all
branch 17.Automatic fire alarm system in all CBS
branches 18. Fire proof cabinet in all CBS branches
TE
IO
TITIL
Note counting machine
746

BHANDARKARS' ARTS & SCIENCE
050080049
COLLEGE, KUNDAPURA
ORGANISATION STUDY
Note sorting machine 45 Note banding

machine 300 Desktop
ultraviolet 2070
lamp
| Hand ultraviolet
lamp
750
Achievement Awards won by the Bank over the years:

1972 -INDIAN MERCHANTS CHAMBER Award for
outstanding contribution towards welfare of community.
LA
IIII
1974 -INDIAN MERCHANTS CHAMBER Award for outstanding

contribution in promotion of savings.
1975 -CERTIFICATE OF MERIT for Bank's house journal

"GIANT".
1976 -INTERNATIONAL AWARD by JAYCEE international for
outstanding contribution to the cause of the JAYCEE
movement.
1977 -ASSOCHAM AWARD for promotion of rural and

agricultural activities of Syndicate Agriculture
Foundation sponsored by the bank.
AA
1978 -INDIAN MERCHANTS CHAMBER AWARD for

outstanding contribution towards welfare of the
community.
1981 -NATIONAL INVESTMENT AND FINANCE AWARD for

Priority Sector lending. 1990 -CHAUDHARI CHARAN
SINGH MEMORIAL NATIONAL AWARD for Rural
Development.
45
ORGANISATION STUDY
Head Office: Manipal-576 103 Your faithful & friendly financial partner
1999 -FICCI AWARD for institutional initiative in the field of "Rural

Development" to RUDSETI jointly sponsored by Syndicate
Bank.
2001 –Banking Technology Award for innovative use of

Banking Applications on INFINET awarded by
IDRBT, Hyderabad.
2003 -Banking Technology Award awarded by IDRBT,

Hyderabad for
the year 2003.
2006- Institute for Development and Research in Banking

Technology (IDRBT), established by Reserve Bank of India
has conferred Syndicate Bank, “Special Award for Use
of IT for Customer Service in Semi-Urban and Rural
Areas". The award was given to Shri C P Swarnkar,
Chairman & Managing Director, Syndicate Bank by Dr
Y.V. Reddy, Hon'ble Governor, Reserve Bank of India on
Sept. 02, 2006 at Hyderabad.
46
ORGANISATION
STUDY
WORK FLOW MODEL

ADVANCES
Interview with
manager
Know your
customer
Evaluation of project
Sanction of loan
Documentation
Transfer to his S/B

accounts
Repayment of interest
Diagram No.1 This is the work flow model
followed by the bank at the time of giving advances
to their customers. Which involves the following
series of steps,
they are:
Interview with the manager:
Any party requiring funds through bank first has to talk

with the respective manager of a branch of his area. One thing
the manager has to see that the amount of loan he has to
sanction is in his power/ limit or else he has to concern his
higher authority. In this stage the process of
47
ORGANISATION STUDY
negotiation regarding rate of interest between party and banker

takes place.
Know your customer: The important duty of a manager is

to know his customer there are many systematical
techniques and process to know the real
identification of the customers. This is done mainly to
avoid anti-laundering.
Evaluation of project The
purpose of loan to be sanctioned
should be clearly understood either by evaluating blue
print of his project or balance sheet or performance
proof of his existing business. This is mainly done to
make sure that repayment of the amount is ensured
and party won't become bankrupt. In case of
personal loan evaluation of the person is done
through other person who is known to the banker.
Sanctioning Sanctioning is not actual giving of loan

that is the amount to be paid is promised the party in
need of it is capable of withdrawing the amount not more
then the amount sanctioned to him.
Documentation: The
documentation deals with filling of
forms that are in contractual form and most of the
documentation process could be seen in all the stage. It also
deals with submission of security for their loan and its
formalities.
Transfer to his account: The party which is borrowing loan from

bank need to have an account in that bank, if not the banker will
create an account for this purpose. And
48
ORGANISATION STUDY
SmdicateB
ank
most of time the loan amount is transferred to his account and rarely they
give it in their hand, either in their hand, either in the form of
DD, Cheque or cash it depends upon the banker
and the party.
Repayment: After the purpose of the loan is served, the

party is obliged to repay the amount incorporating PLR and
other bank charges or according to the
agreement
DEPOSITS
Customer approaching
the
bank/Enquiry
Introduction
Documentation
Diagram No. 2
Saving, Fixed, current

&
Recurring A/C
A/C Holder facilities

Deposits
Withdrawal
Cashier
Cashier
Cash supervisor
Cash
supervisor
Account of the
customer
Account of the
customer
Account of the
customer
49
ORGANISATION STUDY
Head Offices Manipal - 578 104 Your faithful & friendly financial partner
This is the work flow adopted by the bank at the time of receiving the deposits
from their customers.
The first step in this process is customer approaching the bank. When
the customers will have surplus money with them, they will be
looking to
invest that money in some place where they can get good returns
out of it. Bank is one such place which accepts
deposits from their customers and pays interest on them.
So the customers will be looking for that bank which will pay
them highest rate of interest on their deposits. Once the
customer identifies the bank where he is going to deposit his
amount, he has to go through the introduction stage, were
the customer needs to be introduced to the bank. He may
be introduced to the bank by the customer or an
employee of this bank. He is asked for providing
documents like Ration card or any license for address, age
& income proof. Once the account is opened i.e. Either S.B
a/c, fixed deposits, recurring deposits or current a/c) he/she
will provide with facilities like Cheque book, ATM or O.D if it's a
current a/c. Once the customer opens an account in the
bank he can deposit any amount any number of
times but in case of fixed deposit its one lump some
amount deposited till its maturity it is not withdrawn.
When amount is deposited it goes to the hands of
cashier and then to cash supervisor and then to his account, but
now due to CBS in a minute we give to cashier its
transferred to
customers a/c. The depositors are eligible to withdraw the amount which
is credited in their account and not more than that unless it is current
account. Depositors can withdraw as an when they need but in
case of fixed
deposits prior 7 days notice to be given
but today's banker will not ask for any notice just give it
in the spot with penalty. The process of withdrawal is
reverse of depositing where from his account it goes to cash
supervisor from him to cashier finally to the hands of
customer, again traditional work flow. Now all are computerized
where in one person PRASHANTHA SHETTY K.B.B.M. FINAL YEAR REG.
NO. 050080049 BHANDARKARS' ARTS & SCIENCE COLLEGE,
KUNDAPURA
50
ORGANISATION STUDY
does all the activity. Customer can directly withdraw in ATMs or can directly
issue Cheques to the other party.
Future Growth and

Prospectus:
► Banks domestic credit expansion during the fiscal
at 32.47% was far
better than the industry average. We would
like to repeat the
performance under credit font in the
current financial year.
► Bank has done extremely well in expanding its
agricultural credit
base. The y-o-y increase was 51.89%. We would give some
importance to increasing Agriculture portfolio of the
bank in the
current year.
► Similarly the bank is putting its strategy in place to
increase its
portfolio under SME's, Mid corporate, SSIs,
Retail business and
consumer credit.
► Under resource mobilization point their focus is to shed

high cost bulk
deposits and to rely more on low cost deposits.
Interest area being
strengthening SB component of
the deposits.
► Bank also has an ambitious plan to reduce its low
yielding excess SLR
portfolio and to invest it in quality high yielding
advances. > Bank has evolved many strategies to improve its
bottom line in the
current fiscal.
► Bank has received permission from RBI to set up rural

development
venture capital funds to asset Agriculture

Business, Processed Foods, Biotech, Information
technology and non-conventional energy in rural
areas.
Bank is also planning to enter BPO business to utilize

excess man hours and expertise available in the bank.
Reserve bank's permission
is awaited for this venture.
51
ORGANISATION STUDY
MCKINSEY'S 7S FRAMEWORK
Introduction: The Seven -S model was developed by

McKinsey's is an important part of the organization.
The two persons who developed this model were
Tom Peters and Robert Waterman, who were
consultants at the McKinsey's. They had published their
75 models in their respective articles named, “The Art of
Japanese Management (1981)" and "In Search of
Excellence (1982)". McKinsey's & Co's 7S framework
provides a useful framework for analyzing the strategic
attributes of an organization. The model starts on the
premises that each and every organization is not just a
structure as it consists of seven important elements.
Strategy, Structure and Systems can be considered as
"Hardware" of success while Style, Staff, Skills and Shared
Values are considered as the “Software". Companies, in
which these soft elements are present, are usually more
successful at the implantation of the strategy. The
McKensy's framework is shown in the figure. Soft Ss: The
four Ss across the button of the model are less
tangible, more cultural in nature and were termed as Soft
Ss by McKinsey. 1). Skills: The capabilities and
competencies that exist within the company are termed
as skills. 2). Shared Values: The values and beliefs of the
company. Ultimately they guide employees towards "Valued
Behavior". 3). Staff: The company's people resources and
how they are developed,
O
trained and motivated.
52
ORGANISATION STUDY
4). Style: The leadership approach of top management and

the company's overall operating approach. Hard Ss:
The three Ss across the top of the model are described as

"Hard Ss". The 3Ss across the top of the model are
described as "Hard Ss". 5). Strategy: The direction and
scope of the company over the long term is known as
strategy. 6). Structure: The basic organization of the
company, its departments reporting lines, areas of expertise
and responsibility (and how they inter relate). 7). Systems:
These are formal and informal procedures that
govern everyday activity, covering everything from
management information systems, through the systems
at the point of contact with the customer (retail systems,
call center systems, online systems, etc.). Diagram
Showing pictorial diagram of McKinsey's
7'S Model;
Structure
ON
Strategy
Systems
Hard Ss
Shared
Values
Skills
Style
Staff
53
ORGANISATION
STUDY
Soft Ss
7S Model of Syndicate Bank
(1). Structure:
The bank has a well organized three tier structure with a sound foundation
of 2113 business outlets and a well defined reporting
architecture as the body to support. The corporate governance which is
the breath sustaining the momentum is through a very talented
board of directors including government appointed directors
employee and office representative directors guided by RBI,
Ministry of Finance, Government of India which forms the
superstructure. Below figure shows the details structure of the
Syndicate Bank.
ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS
11
CHAIRMAN & MANAGING

DIRECTOR
EXECUTIVE DIRECTOR
EXECUTIVE
DIRECTOR
54
ORGANISATION STUDY
Head Office: Manipal - 576 104 Your faithful & friendly financial partner
GENERAL MANAGERS
Portfolios 1. Corporate Credit Division - I

(CCD-I) 9. Priority Sector Credit Dept 2. Corporate Credit Division - II (CCD-
II) 10. Premises & Maintenance Dept 3. Retail Banking Department
11. Central Accounts & Legal Dept 4.
Planning & Development Dept
12. Personnel Department 5.
Recoveries Dept & General Admn Unit 13. Inspection Department
6. Dept. of Information Technology
14. Vigilance Department 7.
Risk Management & Monitoring Dept. 8. Treasury &
International Banking Division
Regional Offices -
35
Branches - 2125
55
ORGANISATION STUDY
Board of Directors:
Chairman & Managing Director - Shri C.

P. Swarnkar. Executive Director -Shri
George Joseph.
Directors:
Shri M. Deena Dayalan.

Shri M Bhaskar Rao.
Shri K. Seetharamu
Ms. Shobha
Shri Kawaljit Singh

Shri A R Nagappan.
Shri Dinkar S Punja.
Shri Bhupindar Singh Suri..
Shri Vinay Kumar Sorake.
Shri Suresh Kumar Rastage And
having 21 General Manager heading different
departments in the
all
organization
Board of
Directors
Chairman & Managing

Director
Executive Director Scale

VIII
General Manager
Deputy General
Manager
Assistant General Manager
Divisional
Manager
Senior Manager
Manager
Assistant Manager

56
ORGANISATION STUDY
2). Skills: The blend of management skills with employee

orientation and employee skills with organizational
loyalty is unique to Syndicate Bank. Having
introduced successfully the Core Banking Solution
(CBS) with an entire in house team of I.T. and Non-I.T.
officers itself is a proof and track record for the skills of the
prudent banker with the focus of migration of another 1500
branches to the CBS is a big leap in this direction. Training
policies and programmes are suitably designed,
modified and updated on a continuous basis to upgrade
the knowledge levels and skills of its Executives, Officers,
and Workmen on par with the best in the industry. While
several new programmes are introduced in tune with the
Corporate Goals, the existing programmes are made more
interactive and learner-friendly. Risk Management and Basel
II are the focal areas of their training programmes to ensure
Bank's readliness to move over to the new Basel II regime and
extra care is taken to sensitize the workforce to these issues.
The bank has taken its first step in e-learning initiative with
the uploading of reading materials on Export Finance,
Agricultural Lending and Financing SSI on its
Intranet. USER During the year, emphasis was given to
train executives / officers in the areas of Risk
Management, Risk Based Supervision, Basel II,
Agricultural Lending, Credit Management, Corporate
& Retail Credit, Recovery Management, Marketing &
Relationship Banking, Foreign Exchange business
and CBS.
(3). Style: The conduct of the operations as well as

administration at each operational unit having effective
internal control has a vivid style by
57
ORGANISATION STUDY
itself. Every branch manager has his own style of functioning

individually but collectively is a syndicate team
member, which is the brand equity of the bank. The
style of the bank in business or in administration has a
unique niche in the industry, poised to excel among
the peers.
Decision making style powers of disposal):
Chief
Manager
DGM
GM
Asst. General
Manager
Chief Manager
CM or AGM
DGM
CM or AGM
Desk Manager
(Scale II/III)
Desk Manager
(Scale II/ III)
Desk Manager
(Scale II/III)
Desk Manager
(Scale II/ III)
Being one of the leading public sector banks with a
culture of well
managed private sector professional institution, the strategy of
the bank is to be a premier among the peers and to excel in
all the parameters are it business or social responsibilities.
To be the faithful and friendly financial partner to their
beloved clients. The strategy also includes concern for the
middle class and the moderate income group of the
society for financial inclusions. Evolving a product called
“Synd Samanya”, with zero balance in rural and semi-
urban areas and ensuring 100% coverage at all lead
districts the goal under the financial inclusion which is
being met. Thus, all the products and services are
targeted towards the above focus including the core
banking and internet banking
58
ORGANISATION STUDY
etc. which are introduced at a very nominal minimum balance and no
hidden
charges.
Strategies for
2007-08
► Corporate theme for the year- “Acquire Accounts
Aggressively, Add Core Deposits Continuously"
► Year also marked as-Year of NPA
resolution
(5). System: The systems and procedures of the bank are a

time tested one on sound and scientific foundation. The
systems and procedures are well defined and are available
with all the hierarchy as no need to know basis. The recently
developed best practice codes and the best behavioral
practices are the guiding factors of the systems
prevailing. The well structured process manuals are
available for all the functional areas, be it business or
administration or inspection and audit.
(6). Staff:
The staff composition is so mixed and having

experience and loyalty to the institution as the core
credentials reflecting the customer's loyalty and ethics.
The bank has ventured into a recruitment drive at all levels to
ensure the mix of experience and youth at appropriate level
and also to ensure the age profiles of the cadres
match with technological advancement. An ongoing
annual promotional process to ensure blending of
experience and expertise to be brought to the fore. A
balanced team of executives guide the operations. The
bank had a total staff strength of 28000 as on 31-03-
2007.where as the strength of Udupi is 85. And per
employee productivity on that date is
59
ORGANISATION STUDY
4.98crores. The SC/ST Employees constituted 26.23% of the total staff

strength. The HR Policy has been geared to meet the
Corporate objective of accelerated and profitable growth.
This includes Campus and Direct Recruitments for
replenishing skilled Man Power in Agricultural
Finance, IT, Accounts and Financial Management,
International Business, Credit, Marketing, Risk
Management etc. The Promotion Policy has also been
fine tuned to reward Outstanding Performance and also to
facilitate Succession Planning.
(7). Shared Values: The core of above 6Ss is the ground

rules of shared values. It is like the invisible software which
works on the above 6S as the hardware and makes the
institution work to the desired level of output.
Vision, Mission and Quality

Policy:
Vision (2006-2010): "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 stakeholders as a "Faithful and Friendly
Financial Partner”.
ORGANISATION STUDY
Head Office Manipal - 576104 Your faithful & friendly financial partner
Mission of Syndicate Bank: The Mission articulated for each of the

functional area of the Bank is highlighted below:
•
Resources: To achieve global deposits of Rs.50 thousand
crore by 2006 and around Rs.59 thousand crore by 2007
with emphasis on low cost resources slated to constitute at
least 45% of the total resources by planned strategic
initiatives including branch expansion, aggressive
marketing and active involvement of each and every
of the Bank.
g
•
SP
Advances: To build a qualitative asset base of around

Rs.35 thousand crore by 2006 and Rs.41 thousand crore
by 2007 to augment the income portfolio of the Bank.
Business: To achieve global business of nearly Rs.85 thousand

crore by March 2006 and attain Rs.100 thousand crore by 2007.
•
Profitability: To make every branch a profit centre to earn
a net profit of Rs. One thousand crore by 2007and
guarantee best possible returns to the stakeholders
value.
Management of Assets: To focus on improving the quality

of asset portfolio by avoiding slippage of assets to NPA and to
strive to upgrade the existing non-performing assets to performing
assets.
as
11
Human Resources & Organization structure: To mould and

strengthen the organizational structure to meet the future
Business requirements and challenges. To redefine and
redevelop peoples' management techniques so as to
unleash human potential, drive
growth and nurture leadership of high quality corporate
governance.
TILL
Customer Relationship Management: To fine-tune our marketing

strategies to meet the ever-growing market demands, to
PRASHANTHA SHETTY K, B.B.M. FINAL YEAR REG.NO.050080049 BHANDARKARS'
ARTS & SCIENCE COLLEGE, KUNDAPURA
61
ORGANISATION STUDY
ensure that our products and services adapt to the changing needs and
expectations of the customer, to provide the customer the
ideal banking ambience, to reorient our publicity so as to
provide increasing visibility to our Brand, to get our
branches / offices ISO 9001-2000 compliant
Risk Management: To become Basel II compliant under all

facets of Risk Management and transform the
Bank into total risk enabled enterprises, which
addresses the concerns of every stakeholder by
2008.
Information Technology: To bring minimum of 80% of the

Bank's business under Centralized Core Banking
network by 2008 spanning minimum of 700 branches
across the country, supplemented by additional
delivery channels with 750 ATMs and 750 fully
automated branches, backed by a comprehensive fail
safe Business Continuity Plan.
Forex and Treasury: To profitably manage the forex

and investment assets of the Bank to achieve a dealing
room turnover of Rs. 565 thousand crore by March
2008 and a net profit of nearly Rs.100 crore.
Para Banking: To achieve insurance premium collection of

nearly Rs.200 crore with a commission income of
Rs.35 crore, a credit card base of 2 lakh that brings in
earnings of a minimum of Rs.15
crore and a debit card base of 15 lakh fetching a net revenue of
Rs.20
crore.
Inspection: To migrate progressively from the present

transaction oriented inspection system to a risk based
audit exercise
ORGANISATION STUDY
enhancing the effectiveness of risk management, control and
governance processes.
SWOT ANALYSIS
SWOT Analysis refers to the strength and weakness of the

company and
opportunities and threats in the environment. The investor should carry
out a SWOT analysis for the chosen industry. Take
for instance, increase in demand for the industry's
product becomes its strength, presence of numerous players
in the market, i.e. competition becomes the threat to a
particular industry. The progress in the research and
development in that particular industry is an opportunity and
entry of multinationals in the industry becomes the threat to
that industry.
A SWOT Analysis is a strategic planning tool used to

evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in
a business venture or in any other situation
requiring a
decision.
The required first step in SWOT analysis is the definition of the

desired end state or objective. The definition of objective
must be explicit and approved by all participants in the
process. This first step must be performed carefully
because failure to identify correctly the end state aimed for
leads to wasted resources and possibly failure of the
enterprise. Once the objective has been identified,
SWOTs are discovered and listed. SWOTs are defined
precisely as follows:
63
ORGANISATION STUDY
Strengths: Are attributes of the organization that are helpful to

Weaknesses: Are
the achievement of the objective.
attributes of the organization that are harmful to the
achievement of the objective. Opportunities: Are external
conditions that are helpful to the achievement of the
objective. Threats: Are external conditions that are harmful to the
achievement of the objective Strength of Syndicate Bank:
The Bank has a good image in the eyes of the general
public. Syndicate bank provides financial
assistance to various sectors like Agriculture, SSI,
SME etc. As a part of its innovative strategies in
product development process, bank has constantly
reviewed and redefined many of its products to meet
the ever-changing needs and expectations of the
customers.
Like Synd-Samanya, Synd-
Vidhyarthi
► The security arrangements in the bank are carried out
satisfactorily. To
achieve quantitative improvements in key areas of
security, the
Annual Security Action Plan had been effectively
implemented. → The bank has an effective and
transparent system of Corporate
Governance driven by a highly professional Board which
strives to adopt the best business practices that can
enable the Institution to retain the competitive edge
through innovation and world class
standards of delivery of contemporary services
and products.
► In this context, the bank has placed systems in place
for risk
assessment and management and provisions for continuous
monitoring. The bank has been proactive in conforming
to the requirements of the Regulatory Authorities.
64
ORGANISATION STUDY
It is well equipped to meet the challenges of 21st century, in

the areas
of IT, Knowledge and
competition.
► It has launched Centralized Banking Solution (CBS)
which covers
75% of the total
business.
Weakness of Syndicate
Bank:
The bank has implemented Core Banking Solution
(CBS) by networking 1529 branches spread
across over 2120 Branches covering over 75% of
the Bank's business, which need to cover all
the branches so as to cover 100% of the
bank's business.
• IT Policy and Strategy implementation by the bank
has not been
covered to all the branches. Some of the facilities provided by
the Syndicate Bank like ATM, Credit Card, Debit
Card are with in a particular geographic area, which need
to be expanded.
The bank has only a single branch at London; more number

of branches must be developed, not only in India but
also abroad. The large portion of their existing
employees in the edge of retirement, this may
create a problem in the future.
Opportunity for Syndicate Bank: The

Central Banking
Solution (CBS) has to be implemented in every
branch, so as to improve its business activity. More
opportunity is there for the bank if it implements all its
branches totally with computerized and the business may
spread across the world if it diversifies some of the branches
in various countries. The bank continues to identify
new areas and activities that require attention, as well as the
risk management skills, processes, and practices that need
to be developed and strengthened.
65
ORGANISATION STUDY
The bank is planning to adopt best international practices in Credit

Risk Management and Basel II implementation by outsourcing
end to end solution viz., online appraisal system, risk
assessment, risk inputs estimates, capital computation and
RAROC framework. The Bank is also in process of engaging
reputed consultant to design and implement Operational Risk
Management Framework.
ICY
1
Threats for Syndicate Bank: In this technological and fast

growing world the greatest threat for the bank is to
compete with other public sector banks, private banks and
also foreign banks. Syndicate bank has to prove that
it's unique in providing various products and services to
its customers. This is possible by continuous improvement
and adopting technological advancements. Government
policies may go strict. More and more government
policies make the company follow the rules which ultimately
affect the company
revenues.
> Intense competition in the market.

► Market share
redistribution.
► Market place is becoming
smarter.
Conclusion: Itis not simply enough to identify the

strengths, weaknesses, opportunities, and threats of
a company. In applying the SWOT analysis it is
necessary to minimize or avoid both weaknesses and
threats. Weaknesses should be looked at in order to
convert them into strengths. Likewise, threats should be
converted into opportunities. Lastly, strengths and
opportunities should be matched to optimize the
potential of a firm. Applying SWOT in this fashion can
obtain leverage for a company.
66
ORGANISATION STUDY

ANALYSIS OF FINANCIAL PERFORMANCE
Financial Analysis of syndicate Bank for the

year ending 2007
Syndicate Bank, which has a balance sheet size of Rs.900

billion, is
among the ten largest state-owned banks in India in terms of

asset size. The bank operates through a network of 2,126
domestic branches and one international branch. It has a
dominant presence in the southern region, which houses 58%
of its branches. The bank made its first public offer in 1999,
when it offered 125 million equity shares at par and raised
Rs1.25 billion. It raised further capital of Rs2.5 billion
in July 2005, by offering 50 million shares at a premium
of Rs40 per share. As a result, the government's stake has
reduced to 66.5%.
Recent
developments
• Syndicate Bank has revised its benchmark prime-
lending rate
(PLR) from 12.25% to 13% in
April 2007.
• Balance sheet growth remains
strong
• Margins decline YoY but

expand QoQ
• Treasury profits flat; other income up 10% in
FY07
67
ORGANISATION STUDY
• Asset quality improves, with net NPAs down to 0.76%
• Tier-I CAR down to 6.2%; bank would need capital in FY08

ORGANISATION
STUDY
Analysis of Bank's annual report 2006-07

Syndicate Bank is progressing well under all
parameters,
Global
Business:
Global business
Domestic business
2006 Rs.105143
crores Rs.96212
crores
2007 Rs.132526 crores Rs.123095 crores
The Global Business of the bank as on 30 June 2007

grew by 26.04% and stood at Rs.132526 crores as against
Rs.105143 crores as on 30th June 2006. The bank has
strategically opted for moderate growth during the
current fiscal.
• Domestic business as on 30th June 2007 increased to
Rs.123095
crores from Rs.96212 crores as on 30th June
2006, registering a growth of 27.94%.
Deposits:
Total deposits
Domestic deposits
2006
2007 Rs.63829 crores Rs.80682 crores
Rs.59979 crores | Rs.76480
crores
·
The Bank's total deposits reached a level of
Rs.80682 crores as on 30th June 2007 from
Rs.63829 crores as on 30th June 2006,
recording a growth of 26.40%.
•
The growth of deposits in Q1 was 2.60%. The low cost
deposits increased by 32% to Rs. 26045 crores
as on 30th June 2007 from Rs.20374 crores as on
30th June 2006.
•
The Bank will effectively leverage on the 2 Million plus
accounts opened by the Bank in 2006-07 and new
accounts opened in the
first quarter to accelerate the growth of low cost deposits.
69
ORGANISATION STUDY
Stalisties
1
Syndicate Bank
The domestic deposits, with the growth of 27.51%, scaled to a

level of Rs.76480 crores as on 30th June 2007
from Rs.59979 crores as on 30th June 2006.
Advances
:
Global gross advances

Domestic advances
2006 Rs. 41314
crores Rs.36233
crores
2007 Rs. 51844
crores Rs.46615
crores
The Global gross advances as on 30th June 2007 increased by

25.49% to a level of Rs. 51844 crores from Rs. 41314
crores as on 30th June 2006. The CD ratio as on 30th
June 2007 was placed at 64.26% as against
64.73% reported as of 30th June 2006.
•
The domestic advances grew by 28.65% to a level
of Rs.46615 crores as on 30th June 2007 from Rs.36233
crores as on 30th June
2006.
Net profit:
|
Net profit
2006 Rs.180.58
crores
2007 Rs. 221.03
crores
The net profit of the Bank increased to Rs. 221.03 crores for the
quarter ended 30th June 2007 from Rs. 180.58 crores for
the quarter ended 30th June 2006.
The year-on-year growth of net profit works out to 22.40%. The

growth is achieved from the higher NII of Rs. 41 crores
and despite higher operating expenditure by
Rs.48 crores as compared to the previous quarter.
70
ORGANISATION STUDY
Stalisties
1
Syndicate Bank
The domestic deposits, with the growth of 27.51%, scaled to a

level of Rs.76480 crores as on 30th June 2007
from Rs.59979 crores as on 30th June 2006.
Advances
:
Global gross advances

Domestic advances
2006 Rs. 41314
crores Rs.36233
crores
2007 Rs. 51844
crores Rs.46615
crores
The Global gross advances as on 30th June 2007 increased by

25.49% to a level of Rs. 51844 crores from Rs. 41314
crores as on 30th June 2006. The CD ratio as on 30th
June 2007 was placed at 64.26% as against
64.73% reported as of 30th June 2006.
•
The domestic advances grew by 28.65% to a level
of Rs.46615 crores as on 30th June 2007 from Rs.36233
crores as on 30th June
2006.
Net profit:
|
Net profit
2006 Rs.180.58
crores
2007 Rs. 221.03
crores
The net profit of the Bank increased to Rs. 221.03 crores for the
quarter ended 30th June 2007 from Rs. 180.58 crores for
The year-on-year growth of net profit works out to 22.40%. The

growth is achieved from the higher NII of Rs. 41 crores
and despite higher operating expenditure by
Rs.48 crores as compared to the previous quarter.
70
ORGANISATION STUDY
Operating Profit:
2006
Rs.293.95
2007
Rs.314.52
| Operating profit |
|
• The operating profit for the quarter ended 30th

June 2007 stood
at Rs.314.52 crores as against Rs.293.95 crores
reported for the quarter ended 30th June 2006 thereby
recording a growth of
7%.
• The low growth is mainly due to increased

deposit cost on
account of hardening of interest rate and higher
depreciation of Rs.8 crores for investment of
around Rs.132 crores incurred on account of
accelerated CBS conversion in the last year
and in the first quarter of the current year.
1
Total Income:
2006
Total income 77
Interest income |
Profit on sale of
investments
Rs.1357 crores
Rs.1231 crores Rs.
24 crores
2007 Rs.1999
crores Rs.1846
crores Rs. 38
crores
|
• The total income of the Bank increased to Rs.1999 crores

during
the Q1 of 2007-08 from Rs.1357 crores against Q1 of 2006-
07, an increase of 47.33%, mainly contributed by the
growth in interest
income.
• Interest income for the quarter ended 30th June 2007

improved to
Rs.1846 crores from Rs.1231 crores reported for the
quarter ended 30th June 2006. While the overall growth
in interest income works out to 50%, the increase in
interest on advances was to the extent
of 58.40%.
ORGANISATION STUDY
The profit on sale of investments was to the extent of Rs. 38

crores for the quarter ended 30th June 2007 as against Rs.
24 crores earned for the quarter ended 30th June 2006.
The fee based income increased to Rs.127 crores for
the quarter ended 30th June 2007 from Rs.110 crores
for the quarter ended 30th June 2006, increase by
15.45%.
Net Interest Income (NII):
2006 Rs.506
crores
2007 Rs.547
crores
Net Interest Income
The NII for the quarter ended 30th June 2007 grew by 8% and
stood at Rs.547 crores as against Rs.506 crores for
Net worth:
2006 1 Rs.2818
crores
2007 Rs.3406
crores
Net worth
• The Net worth of the Bank increased to Rs.3406 crores as on

30th June 2007 from Rs.2818 crores as on 30th June 2006, mainly
contributed by the retained earnings.
NPA Management
2006
3.85%
2007 3.06%
Non Performing Asset
Gross NPA came down to 3.06% as of 30th June 2007 from

3.85% as of 30th June 2006. Net NPA came down to 0.82%
as of 30th June 2007 from 0.86% as of 30th June 2006.
Capital Adequacy Ratio

(CAR):
• The CAR stood at 12.62% as of 30th June 2007 well

above the
stipulated mark of 9%. The Tier I ratio was placed at 6.92% as
of
30th June 2007 and the Tier II ratio stood at 5.70%.
Other Financial Parameters:
72
ORGANISATION STUDY
i) Return on Assets: The return on assets declined to

0.98% as on 30th June 2007 from 1.02% as on 30th June 2006.
The ratio as on 315 March 2007 was 0.91%.
ii) Earning per share (EPS): EPS improved to Rs. 16.92 as on 30th
June 2007 from Rs. 13.84 as on 30th June 2006.
iii) Book Value per Share: The Book Value per share increased from Rs.
57.74 as on 30th June 2006 to Rs. 73.59 as on 30th June 2007.
iv) Employee Productivity: Business per employee improved from

Rs. 4.04 crores as on 30th June 2006 to Rs. 4.96 crores as on 30th
June 2007.
Analysis of balance sheet and Profit & Loss Account of three

years as on 31-03-2005 to 31-03-2007:
The balance sheet of the Bank could be analyzed on the

basis of the following important aspects, (Rs, in '000')
1
Capital
Deposits
Borrowings
Investments
Advances
31-03-2005
471,96,83
46294,56,25
322,00,93 20370,73,32 26729,20,28
31-03-2006 31-03-2007
521,96,83
521,96,83 53624,39,47 7863,35,67
343,05,50 1373,52,94 17269,10,84
2 5234,01,14 3 6466,23,31
151670,43,80
Income: Interest
earned 1 Other
income
Total
3757,62,37
564,55,41
4322,17,78
4050,41,90
561,96,59
4612,38,49
6040,07,15
618,47,63
6658,54,78
Expenditure:
Interest
expended
Operating expenses
Provisions & contingencies
Total
2063,79,592169,54,87 3890,01,62 1264,20.34
1434.81,37 1385,97,52 591,27,74
471,53,01666,49,56 3919,27,67 4075,89,25
5942,48,70
73
ORGANISATION STUDY
Profit / Loss:
Net profit
402,90,11
536,49,24
716,06,08
Ratio analysis
re
Ratio analysis is the mostly widely used method for the

analysis of financial statement. A financial ratio is a
ratio of selected values on a enterprise's financial
statements. There are many standard ratios used to
evaluate the overall financial condition of a corporation or
other organization. Financial ratios are used by managers
within a firm, by current and potential stockholders
(owners) of a firm, and by a firm's creditors. Security
analysts use financial ratios to compare the
strengths and weaknesses in various companies. If shares
in a company are traded in a financial market, the
market price of the shares is used in certain
financial ratios.
Values used in calculating financial ratios are taken from
the balance sheet, income statement, cash flow statement
and (rarely) statement of retained earnings. These
comprise the firm's "accounting statements" or financial
statements.
The important ratios are as

under,
✓ Return on Assets
✓ Earnings Per Share
✓ Profit Margin ratio ✓

Interest
Expended Ratio.
74
ORGANISATION STUDY
Profit Margin ratio
Profit margin measures the relationship between the total income

and profit of the company. As the profits may be gross or net, there
are two types of profit margin gross profit margin and net profit margin.
Net profit margin measures the relationship between net profits

and total income of the firm.
Formula:
Net Profit
X100 Total Income
Particulars
31-03-
2007
31-03-
2006
31-03-2005
Net Profit
5364924
4029011
7161108
6658547
8
Total Income
46419943
43480439
Profit
Margin
10.75%
11.56
%
9.27%
Interpretation:
The ratio reveals that the profit margin has been reduced in the
year 2006-07 that is 10.75%, this is due to the increase in the total
expenses of the bank. The major expense being the interest, which
is increasing from the previous years.
Return on Assets ratio
Return on Assets ratio is one of the profitability ratios which is

measured in terms of the relationship between profits and
assets. The ROA may also be called profit-to-asset ratio. It
measures the profitability of the total investments of the firm.
Formula:
Net Profit
-X100 Total Assets
Particular
s
31-03-
2007
31-03-
2006
31-03-
2005
ORGANISATION STUDY
fursacas
Syndicate Bank
Net Profit
7161108
5364924
4029011
Total Assets
892772901
610767552
521094246
ROA
0.80%
0.88%
0.77%
Interpretation:
The analysis shows that return on assets in the year 2006 is

highest i.e.88%. But in the year 2007 it has been reduced to .80%,
this is due to underutilization of the assets of the bank. In other
words assets of the bank are not employed where optimum returns can
be earned.
Interest Expense ratio
Interest Expense reveals the relationship between the interest

expended and the total income. The more the interest
expense the less is the value of the ratio. This ratio also reveals
the proportion of the amount paid as interest out of the total income
of the company.
Formula
Interest Expended
--x100 Total Income
31-03-2006
31-03-2005
Particulars
31-03-2007
Interest Expended 38900127
Total Income 66585478 Interest
expense 0.58% Ratio
21695487
46419943
0.47%
20637959
43480439
0.47%
Interpretation:
The ratio shows that .58% of the total income is paid as interest. It
shows the interest expenditure is rising as compared to the past three
years which in turn reduces the profit of the bank.
Earnings Per Share
It measures the profit available to the equity shareholders on a

per share basis, that is, the amount that they can get on every
share held. It is calculated by dividing the profits available to the
shareholders by the number of the outstanding shares.
76
ORGANISATION STUDY
Formula:
Net Profits Available to equity shareholders EPSE

-X100 No of Shares outstanding
Particul
ars
31-03-
2007
31-03-
2006
31-03-
2005
Earnings Per
Share
13.72
%
10.60
%
8.54
%
Interpretati
on
This shows that the profits available to equity shareholders have

been increased over a period of time. This is because the total
income of the bank has been increasing from the past years. It
is the measure of profitability from the owner's point of
view.
Perticulars Interest Expense/ Interest

Income (%) Fee Based Income/ Total
Income (%)
Employee Cost/Operating Cost (%)
Total Interest exp/Avg. interest
bearing
31-Mar-07 31-Mar-06 | 31-Mar-05
64.40
53.56
54.92 7.61
7.30
6.76 66.95
74.63
78.37
5.8
1
4.31
4.6
2
funds (%
Interest spread (%) Fund Based
Income/Funds employed (%) Net Profit/
Funds Employed (%)
PAT /Net worth (%)
Tax/PBT (%) Total
liabilities / Net worth
Investment Deposit Ratio
Credit Deposit Ratio
Capital Adequacy Ratio Ratio of
NPA's to Net Advances
Yield on
advances
Cost of deposits Return on
assets
3.20
7.69
0.86
19.76
0.00
24.63
0.32
0.66
10.70
1.59
8.64
4.58
0.82
3.51
7.78
0.94
18.93
0.00
21.55
0.32
0.68
11.73
0.86
8.72
4.48
0.91
3.81
8.52
0.83
18.33
7.04
23.70
0.44
0.58
11.74
0.76
9.28
5.44
0.91
Share statistics:
As on EPS
(Rs.) CEPS
(Rs.)
31-Mar-07
13.7
2
15.32
31-Mar-06 L 10.28
11.15
31-Mar-05
8.5
4
9.33

KUNDAPURA
ORGANISATION STUDY
Book Value (Rs.)

DPS (Rs.)
69.41 3.23
54.29 2.85
46.58 2.26
78
ORGANISATION
STUDY
LEARNING EXPERIENCE
Learning Experience
Gained
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. Various banks like Public
Sector Bank, Private Sector Bank, Financial institution etc. are
making sincere efforts to meet the expectations of the customer by
providing better products and services.
Syndicate bank is one among the Top Tenth bank in public
sector. The study has highlighted that the bank is mainly
focusing on customers' satisfaction through various
schemes. Syndicate bank is started the PIGMI
deposit scheme. Which now generating deposits of Rs
20000000 per day. The study reveals that the Syndicate
Bank continues to identify new areas and activities that
require attention, for example the very recent
schemes like
Pigmy plus, Sindvidyarthi, syndsamanya are best examples.

The risk management skills, process, and practices that
need to be developed and strengthened. The bank is
planning to adopt best international practices in Credit Risk
Management and Base II implementation by outsourcing
end to end solution viz., on-line appraisal system, risk
management, risk inputs estimates, capital computation
and RAROC framework. The bank is also in process of
engaging reputed consultant to design and implement
Operational Risk Management Framework. Apart from
these the bank is also aiming to:
79
ORGANISATION STUDY
1. Highly focused on human resources initiative. An employee is given
ample opportunities to learn and

grow. 2. Bank has to give importance
to: National Priorities:
Some of the National priorities given by the bank in the areas

like: Priority Sector Credit, Agriculture and Allied
Activities, Rural Extension Education Programmes,
Relief Measures for farmers,
Housing Sector, Harnessing Solar
Energy etc. Social Development:
Syndicate Rural Development Trust, Rural
Development and Self Employment Training
Institute, SyndVidya, Implementation of Official
Language (Hindi) etc. are its some of the concern
towards
social development.
SME Sector:
► The bank is aiming for a minimum of 20% year-
on-year growth
in the outstanding credit to SME, with a view to
doubling the credit
to SME's by 2009
-10.
► The bank is also providing composite loans up to Rs.
100 lacs to
tiny sector.
► The bank has the novel, exclusive schemes for

providing hassle
free credit to SME's like, Syndicate Laghu Udyami Credit Card
wherein finance up to Rs.10 lacs can be made to small
entrepreneurs and SyndUdyog, wherein, SME's
can be financed up
to Rs. 50 lacs.
3. The security arrangements in the Bank are carried out

satisfactorily.
To achieve quantitative improvements in key areas of

security, the Annual Security Action Plan had been
effectively implemented.
ORGANISATION STUDY
Apart from these issues the bank has to concentrate on various aspects
like:
Provide employment opportunities, provide better services, and focus

on SME, Agriculture sector because they constitute a major
part for the development of GDP of any nation; better
training has to be given to the employees so that they can
cope up with the latest technology which the bank is
adopting now a days (CBS).
In the present era, many banks make their best effort to attract
number of customer towards them, which resulted in
aggressive competition in banking industry. So, Syndicate
Bank must cope up with the latest technology so as to
provide better services for the customers, they must make
an effort to study well the mindset of the customer
and provide new products and services. As all the banks
are trying to attract more industry to borrow loan from the
bank, it is necessary for Syndicate Bank to improve the
quality of service provided by the adoption of new
technology like CBS, ATM, Global Card etc. in all their
respective branches.
ORGANISATION STUDY
CONCLUSIONS
Syndicate Bank Over the years has been various political,

social and economic transitions. Today, Indian
banking is under reform process. Foreign Banks are
entering into market and private banks are gaining
momentum. This stage is crucial for a nationalized Bank like
Syndicate Bank. Its future depends on how it can face
threats and cash on opportunities. Thinking globally
considering local aspects is the need of this hour. Syndicate
Bank must use its vast banking experience to gain a strong
hold in the Indian banking system and build a globally
respected brand.
Syndicate Bank has a bright future as it gives greater

thrust towards technological upgradation of its
operations besides this, the bank has also installed ATM's
at most of its branches.
Realizing and evolving the diverse needs of customers the Bank

has diversified too, entering several new areas such as
credit card merchant banking, hire purchase and leasing
and electronic remittance service etc.
Syndicate Bank is one among the few banks in the country to

take up principal membership of VISA International and
MasterCard International.
Thus the activities of Bank are improving day by day.

Today, Syndicate Bank is a vibrant institution. It has
spread its branch network in all 28 states and 4 union
territories of the country and also abroad.
FINANCIAL RESULTS FOR THE NINE
MONTH PERIOD ENDED DECEMBER 31,
2007
Syndicate Bank HEAD OFFICE, MANIPAL - 576 104,

KARNATAKA
UNAUDITED (REVIEWED ) FINANCIAL RESULTS FOR THE

NINE MONTH PERIOD ENDED DECEMBER 31, 2007
(Rs. in Lakhs) Particulars
Quarter Quarter Nine
Nine Previous ended
ended months months Accounting 31/12/2007 31/12/2006 | ended ended
year ended (Reviewed) (Reviewed 31/12/2007 31/12/2006
31/03/2007
(Reviewed (Reviewed (Audited)
Interest earned (a+b+c+d)

198700 142678 53670
Interest/discount on advances/bills Income on investments Interest on balances with
Reserve Bank of India and other inter bank funds others
163530 114375 44309 4632
577188
415464 154856
5047
430343 296806 125055
8239
604007 417992 170530 15205
533
1819
214
1821
243
280
2
Other Income
27863
14073
64809
42472
61848
3
TOTAL INCOME (1+2)
226563
I
177603
641997
472815
665855
Interest Expended
151297
107937
426175
275704
389002
5
Operating Expenses (e+f)
Employees cost Other operating expenses
38005 23764 14241
37684 25056 12628
114506 73040 41466
106212 70752
35460
138597 89447 49150
6
189302
145621
540681
381916
527599
TOTAL EXPENDITURE (4+5) (Excluding Provisions and Contingencies)
7
37261
31982
101316
90899
138256
OPERATING PROFIT (3-6) (Profit before Provisions and Co
encies)
Provisions (other than tax) and Contingencies

4370
13950
15080
29303
65474
9
Exceptional items
32891
18032
86236
61596
72782
10 Profit(+)/Loss(-) from ordinary activities
before tax (7-8-9)
11 Tax expenses
5572
-4580
14056
420
1176
27319
22612
72180
61176
71606
12 Net Profit(+)/Loss(-) from ordinary activities
after tax (10-11)
13 | Extraordinary items (net of tax)

0
of
14 Net Profit(+)/Loss(-) for the period (12-13)
27319
22612
72180
61176
71606
52197
52197
52197
52197
52197
15 Paid-up equity share capital
(Face value of the share Rs. 10/- each)
338479
211558
338479
211558
266298
16 Reserves excluding revaluation reserves
(as per balance sheet of previous accounting year)
17 Analytical Ratios
Percentage of share held by Govt. of India Capital Adequacy Ratio Earning
per share (Rs.)
66.47% 11.99%
66.47% 1 11.23%
66.47% 11.99%
66.47% 11.23%
66.47% 11.74%
13.83
11.72
13.72
5.23
4.33
13.83
11.72
13.72
(a) Basic and diluted EPS before Extraordinary items (net of tax
expense) for the period, for the year to date and for the previous year (not to
be annualised) (b) Basic and diluted EPS after Extraordinary items for the
period, for the year to date and for the previous year (not to be annualised) NPA
RATIO
(a) Gross NPA (b) Net NPA (c) % of gross NPAS (d) % of net NPAS Retum on
Assets
5.23
4.33
160472 70278
165211 43780
2.86
3.33
160472 70278
2.86 1.27 1.02
165211 43780
3.33 0.90 1.06

155981 39101
2.95 0.76 0.91

1.27 1.
16
0.90
.18|
Tv)
1
18 Public Shareholding
No. of shares Percentage

of share holding
175000000 175000000 | 175000000 | 175000000 175000000
33.53% 33.53% 33.53% 33.53% 33.53%
Rs. P.
Consolidated Details for the nine months period ended 31.12.2007
Rs. in Crores
141,569.00
722.04
1 Consolidated turnover 2 Consolidated Net Profit 3 Consolidated
EPS (Not Annualised) 4 Consolidated EPS (Annualised)
13.83 18.44
BIBLIOGRAPHY
www.finance.indiamart.com/investment in india/banking in india.html
•
http://syndicatebank.i
n
IBA bulletins.
• Brochures, Hand Books, Circulars, Magazines, Annual

reports provided
dicate Bank
• Book titled "Syndicate Bank A Peoples Bank” by M. V.

Kamath.
INTRODUCTION
bank
INDUSTRY PROFILE
COMPANY PROFILE
PRODUCTS & SERVICES PROFILE
Structure
Strategy
Systems
Shared Values
Skills
Styl
e
Staff
MCKINSEY'S 7S FRAMEWORK
SWOT ANALYSIS
ANALYSIS OF
FINANCIAL PERFORMANCE
LEARNING EXPERIENCE
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
CONTENTS
Introduction Industry
Profile Company
Profile Products and
Services Profile
McKinsey's 7S
Framework SWOT
Analysis Analysis of
Financial
Performance 8. Learning
Experience 9. Conclusion 10.
Annexure 11. Bibliography
BHANDARKARS' ARTS AND SCIENCE
COLLEGE, KUNDAPUR
Ś COLL
GE.COON
DAPOO
रामानन्धनम्
CERTIFICATE
This is to certify that Mr. PRASHANTHA SHETTY K. is a student of

Final Year
B. B. M. 2007-08 of this institution. This project report Titled "A

PROJECT
REPORT ON ORGANIZATION STUDY OF SYNDICATE BANK” has

been
prepared by him in partial fulfillment for the requirement of the

Bachelors Degree
in Business Management, to be submitted to Mangalore

University, under the
supervision and guidance of Ms. VIDYA, Lecturer, Department of

Commerce and
Business
Management.
Guide
Principal
Head of the Department of
Commerce and Business
Management
Date: Place:
Kundapura
COLLEGE, KUNDAPUR
GE.COO
$ SOU
GOWDAPOOR
या टवरचित
V
DECLARATION
I PRASHANTHA SHETTY K, a student of BHANDARKARS' ARTS

AND
SCIENCE COLLEGE, KUNDAPUR, Final Year B. B. M. 2007-08

do hereby
declare that this project report

Titled “A
PROJECT
REPORT ON
ORGANIZATION STUDY OF SYNDICATE BANK” is

my original work and
that it has not previously formed the basis for the

reward of any Degree/Diploma
or other similar title.
This project is been prepared by me in partial fulfillment for the

requirement of the
Bachelors Degree in Business Management, to be submitted to

Mangalore
University, under the supervision and guidance of Ms.

VIDYA, Lecturer,
Department of Commerce and Business

Management.
Date: Place:
Kundapura
( MR. PRASHANTHA SHETTY K.)
ACKNOWLEDGEMEN
T
I am very much beholden to Mangalore University
for this wonderful opportunity to undertake the
Project Study as a part of the fulfillment of
Bachelor's Degree in Business Management.
My grateful thanks are due to Prof. NARAYAN
RAO the Principal, Bhandarkars' Arts and
Science College for extending the necessary
support in the preparation of this project.
A particular word of thanks is due to Prof. K
SHANTHARAM H.O.D. of Commerce and Business
Management and other faculty members for
their useful tips and encouragement. My
esteemed guide, Ms. VIDYA, Lecturer in
Business Management, deserves all appreciation
and thanks for patiently and efficiently guiding me
throughout the preparation of this project.
I am extremely grateful to Deputy General
Manager SRI SUJIR PRABHAKAR, Assistant General
Manager SRIH VASANTH NAYAK & STAFF OF
SYNDICATEBANK Regional Office Udupi for
providing the necessary information
I also express my gratitude to
RADHAKRISHNA JOISA, Personal Department
Head office Manipal for his words of wisdom,
encouragement and
the interest he had to make my project an
interesting and educative one.
Above all I thank my parents for helping,
and encouraging me throughout my project work
and also my friends and Mr. DINESH BHAT of
BHAT'S TELECOM CENTRE, who have helped me
in completing this project on time.
A PROJECT REPORT ON
organization study OF
३१
VENDLY
SyndicateBank
Submitted
By
Mr. Prashantha Shetty K.

Reg. No.
050080049
Under The Guidance

of
Ms. VIDYA
Lecturer,
Department of Commerce and Business
Management
Project Report submitted to Mangalore University

in partial fulfillment for the requirement of the
Bachelor's Degree in
Business
Management.

COLLEGE, KUNDAPUR
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ORGANISATION

Data Collection is a Step in the preparation of project report.

Data is collected by the interacting with bank managers

The data is collected for report by various records

To study the loans and

* To study the financial

• To study the source of finance

To study the history of

* Sample size is limited due to the limited period

A bank is a business center that deals in financial services. A

A bank is an institution which deals in money and credit.

Definition of Banking: According to Section 5(1)(b), “Banking

Definition of Banking Company: Section

Features of Banking: The following are the basic

→ Deposits must be withdrawable: The deposits

Commercial in nature: Since all the banking functions

» Nature of agent: Besides the basic functions of

Banking in India originated in the first decade of 18th century with

The Indian Banking industry, which is governed by the Banking

Stages of development of Banks in

At the beginning of the 20th century, Indian economy

Bank of Bengal, and the Bank of Madras - which later on merged to

Under these circumstances, many Indians came forward to set

During the Wars

PRASHANTHA SHETTY K, B.B.M. FINAL YEAR REG. NO. 050080049

boost due to war-related economic activities. At least 94 banks in India

The partition of India in 1947 had adversely impacted the

In 1948, the Reserve Bank of India, India's central banking

authority, was nationalized, and it became an institution owned by the

Head Offices Manipal - 578 104

The Banking Regulation Act also provided that no new bank or

The nationalization of 14 major banks with deposits of Rs. 50

PRASHANTHA SHETTY K, B.B.M. FINAL YEAR REG. NO.

Head Office: Manipal-576 103

momentum after the nationalization of major commercial banks and the

Branch expansion of all commercial banks:

Table No. 01.

Deposit Mobilization: Planned economic development,

Table No. 02.

Head Office: Manipal-576 103

1,92,540 9,62,620 15,01,930

Since, 1950-51 deposit mobilizations and supply of

Growth of deposits in India of all scheduled commercial banks was as

1951 -1971 (20 years) -700% or 7 times. 1971

In the early 1990s the then Narasimha Rao government

Head Offices Manipal - 578 104

The new policy shook the Banking sector in India completely.

Currently (2007), overall, banking in India is

With the growth in the Indian economy expected to be strong for

Head Office: Manipal - 576 104

expected to be strong. M&As, takeovers, asset sales and much

Currently, India has 88 scheduled commercial banks

As far as the present scenario is concerned the banking industry in

National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad

ANZ Grindlays Bank, ABN-AMRO Bank, American

Diagram: Shows the Banking Structure in

Reserve Bank of India

Regional Rural Banks in India

The banking system in India can be broadly divided into three

Scheduled and Non-Scheduled Banks:

Under the Reserve Bank of India Act, 1934, banks were

Commercial banks have been in existence for many

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