Final Report_G Kaushik Reddy

7/31/2019 Final Report_G Kaushik Reddy

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A REPORT ON

AT SYNDICATE BANK,

REGIONAL OFFICE,

KHAIRATABAD,

HYDERABAD

http://en.wikipedia.org/wiki/File:Syndicate_Bank_Logo.png



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A REPORT

ON

STUDY OF RETAIL PRODUCTS PROVIDED BY

SYNDICATE BANK

AT

SYNDICATE BANK, REGIONAL OFFICE, KHAIRATABAD.

The report is submitted as partial fulfillment of the requirement of PGDM

programme of ITM Business School, Siruseri, Chennai.

By

G. Kaushik Reddy

Institute for Technology and Management Business School

Siruseri, Chennai.

July 2011



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AUTHORISATION

I hereby declare that “STUDY OF RETAIL PRODUCTS PROVIDED BY SYNDICATEBANK” has been prepared by me during the academic year 2011. The project was done under the

supervision and able guidance of Prof. Padmanabhan of Institute for Technology and

Management Business School, Chennai and Mr. M.K.Goel (chief manager (Marketing)) of

Syndicate Bank in partial fulfillment of the requirement for the Post Graduate Diploma in

Management course at Institute for Technology and Management Business School, Chennai.

I also declare that this project is the result of my original work and has not been submitted to

any other institution for the award of any degree or diploma.

Date: - Signature

Place: Hyderabad G Kaushik Reddy



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ACKNOWLEDGEMENT

I have great pleasure in successful completion of the project titled “STUDY OFRETAIL PRODUCTS PROVIDED BY SYNDICATE BANK” at Syndicate Bank, Regional

office, Khairatabad.

I would like to express my gratitude to Mr. G.K.Sharma, Director, Institute for Technology

and Management Business School, Chennai for allowing me to do my Summer Internship

Project

I also thank Prof. Padmanabhan (Faculty- Finance) & Faculty guide,

Institute forTechnology and Management Business School, Chennai who has supported me with his valuable

insights into the completion of the project.

I am very much thankful to Mr. H.N.Vishweshwar (General Manager, Syndicate bank) for

providing me opportunity to do this project. I am highly indebted to Mr. M.K.Goel (chief

manager (Marketing)) — company guide and Mr. Brahma Reddy (P.R.O) of Syndicate Bank for

giving me valuable suggestions in the completion of the project and bringing out the report in the

best possible way.

G Kaushik Reddy



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EXECUTIVE SUMMARY

Banks are backbone of any economy. Banks are important for both healthy economy and

financial stability. Banks act as financial intermediaries and they finance the needs of both

individual customers and corporate sector.

Banking is an activity that involves acceptance of deposits and lending or investment of

money. Banking can be classified into Retail Banking, Corporate Banking, and Investment

Banking. Retail banking deals directly with individuals. Corporate Banking deals with providing

services to large business entities. Investment Banking is related to activities on financial

markets.

Retail banking refers to provision of banking services to individuals where financial

institutions are dealing with large number of low value transactions. In India majority of people

belong to middle class. The rise in purchasing power of middle class coupled with more liberal

attitudes towards personal debt is contributing largely to retail banking. Rural areas have large

purchase power at disposal which is an opportunity to retail banking.

Hence considering the importance, scope and growth of retail banking, retail banking has

been chosen as the area of the project. The project titled “Study of Retail Products provided by

Syndicate Bank” has been to study features of various products provided by Syndicate Bank and

to compare salient features of retail banking products of Syndicate Bank vis-a-vis other public

and private sector banks

Retail products pertain to products and services provided by the bank to individual

customers. Loans, Deposits, E banking etc… are the products offered by banks to individual

customers. A brief study has been undertaken on retail banking and the role played by Syndicate

Bank as a leading provider of retail banking services is understood.

The second part deals with the primary research where certain factors related to

Syndicate Bank such as recall level of Syndicate Bank, awareness about Syndicate Bank and its

global debit and credit card, etc…



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In the third part a reasonable comparison of the products and services of Syndicate Bank

is made with other leading banks like ICICI Bank and Andhra Bank. In this part comparison of

Total Business, Deposits and Advances of various banks is done and sector wise representation

of above comparisons is also depicted

A survey consisting of structured non disguised questionnaire has been done for a sample

of 33 people using simple random sampling method and certain conclusions are being arrived at.

Market share of Syndicate Bank being low Vis a Vis other banks, Syndicate Bank needs to make

aggressive strategies to make an effective dent in market so that more number of people open

account with Syndicate Bank. The recall level of Syndicate Bank is comparatively low and

advertising and other image building exercises need to be implemented to improve recall level.

As most of respondents have indicated that Timely processing of loan as one of the most

important feature, Syndicate Bank needs to emphasise on speedy/prompt disposal of loan

proposal. Above given suggestions will be useful for bank.



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CHAPTERISATION

CHAPTER 1- INTRODUCTION TO THE PROJECT:

The content of this chapter gives an overall idea about the project, its objectives,

Research Methodology adopted and the scope and limitations of the project. This chapter

enables the reader to understand the important points related to the project.

CHAPTER 2- INTRODUCTION TO BANKING INDUSTRY:

In this chapter a brief introduction about the banking industry is discussed. This

chapter also focuses on the banking system and structure in India.

CHAPTER 3- INTRODUCTION TO SYNDICATE BANK:

This chapter deals with the introduction about the Syndicate Bank, its formation and its mile

stones.

CHAPTER 4- DEPOSITS:

This chapter gives clear view about deposits and discusses about various types

of deposit schemes provided by Syndicate Bank.

CHAPTER 5- LOANS:

This chapter deals with loans and types of loans provided to the individual

customers by Syndicate Bank.



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CHAPTER 6- E-BANKING:

This chapter focuses on E-Banking and various types of delivery channels. It

also deals with Global debit card and Global credit card provided by Syndicate Bank.

CHAPTER 7- PRIMARY RESEARCH:

This chapter discusses about the primary research work done by using

questionnaire and analysis of results of questionnaire.

CHAPTER 8- COMPARISION OF VARIOUS PRODUCTS AND SERVICES OF

SYNDICATE BANK WITH OTHER BANKS:

This chapter deals with comparison of various products and services provided

by Syndicate Bank Vis a Vis ICICI Bank and Andhra Bank

CHAPTER 9- CONCLUSION:

The successful completion of project and all the retail products and services

provided by Syndicate bank are discussed briefly in this chapter.



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TABLE OF CONTENTS

COVER PAGE 2

CERTIFICATE 3

ACKNOWLEDGEMENT 4

AUTHORISATION 5

EXECUTIVE SUMMARY 6

CHAPTERISATION 8

CHAPTER 1- INTRODUCTION TO THE PROJECT 17

1.1 Retail Banking---Products and Services 17

1.2 Objectives of the project 18

1.3 Selection of the topic 18

1.4 Research Methodology 19

1.5 Scope and Limitations of the project 19

CHAPTER 2- BANKING INDUSTRY 20

2.1 Introduction to Banking Industry 20

2.2 History of banking in India. 21

2.3 Banking system in India 24

2.4 Banking structure in India 25

2.5 Functions of commercial banks 26

CHAPTER 3- INTRODUCTION TO SYNDICATE BANK 29

3.1 About Syndicate Bank 29



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3.2 Mergers with Syndicate Bank 30

3.3 Vision of the bank 31

3.4 Mission of the bank 31

3.5 Tagline of the bank 31

3.6 Logo of the bank 31

3.7 Milestones 32

CHAPTER 4- DEPOSITS 36

4.1 Current account 36

4.2 Savings bank account 37

4.2.1 Savings account 37

4.2.2 Synd Samanya 38

4.2.3 Premium Savings account 39

4.3 Term Deposits 40

4.3.1 Fixed Deposit 40

4.3.2 Recurring Deposit 42

4.3.3 Seniors Citizens Security Deposit 424.3.4 Synd Pigmy 1928 Deposit 42

4.3.5 Synd Pigmy 2006 Deposit 43

4.4 Statistics for Deposits 44

CHAPTER 5- LOANS 45

5.1 Synd Saral 47

5.1.1 Synd Saral(Salaried Class) 47

5.1.2 Synd Saral(Non Salaried Class) 48



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5.1.3 Synd Saral(All Types of Borrowers) 50

5.1.4 Synd Saral(Consumer Durables) 51

5.1.5 Synd Saral(Women) 52

5.1.6 Synd Saral(Agriculturists) 55

5.2 Synd Mortgage 57

5.3 Synd Nivas 59

5.4 Synd Vidya 62

5.5 Synd Vahan 65

5.6 Synd Senior 68

5.7 Synd Swarna 70

5.8 Statistics for Loans 72

CHAPTER 6- E BANKING 74

6.1 Core Banking Solutions 74

6.2 Delivery Channels 75

6.2.1 Automated Teller Machines 76

6.2.2 Internet Banking 776.2.3 Tele Banking 78

6.3 Global Cards 79

6.3.1 Syndicate Global Credit Card 79

6.3.2 Syndicate Global Debit Card 81

CHAPTER 7- PRIMARY RESEARCH 84

7.1 Questionnaire and its Analysis 84

7.2 Suggestions 89

CHAPTER 8- DATA FINDINGS AND ITS ANALYSIS 90

8.1 Comparison of Deposits of Syndicate Bank Vis-à-vis 91



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ICICI Bank and Andhra Bank for Fiscal Year

2010-2011 and its analysis

8.2 Comparison of Loans of Syndicate Bank Vis-à-vis 93



8.3 Comparison of ATMs of Syndicate Bank Vis-à-vis 93



8.4 Comparison of Total Business of Syndicate Bank Vis-à-vis 94

Other Banks for Fiscal Year 2010-2011 and its analysis

8.5 Comparison of Total Deposits of Syndicate Bank Vis-à-vis 95


8.6 Comparison of Total Advances of Syndicate Bank Vis-à-vis 97


8.7 Comparison of Total Advances of Syndicate Bank Vis-à-vis 99


CHAPTER 9- CONCLUSION 101

ANNEXURE-1 QUESTIONNAIRE 102

BIBLIOGRAPHY 103

GLOSSARY 104



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TABLE OF ILLUSTRATIONS

CHAPTER

NO

CONTENTS FIG

NO

TABLE

NO

PAGE

NO2 BANKING STRUCTURE IN INDIA 2.1 25

2 FUNCTIONS OF COMMERCIAL BANKS 2.2 26

4 SECTOR WISE DEPOSITS FOR YEAR 2010-

2011

4.1 44

4 PICTORIAL REPRESENTATION OF

DEPOSITS

4.1 44

5 SERVICE CHARGES FOR SYND

SARAL(AGRICULTURISTS)

5.1 56

5 RATE OF INTERESTS FOR SYND NIVAS 5.2 61

5 QUANTAM OF LOANS FOR SYND SENIOR 5.3 68

5 SECTOR WISE REPRESENTATION OF

LOANS FOR YEAR 2010-2011

5.4 72

5 PICTORIAL REPRESENTATION OF LOANS

FOR YEAR 2010-2011

5.1 72



5.5 72



5.6 73

5 COMPARISION OF LOANS FOR YEARS

ENDED ON MARRCH 31-2009,2010,2011

5.2 73

6 ACCEPTANCE OF GLOBAL CREDIT

CARD

6.1 79

6 ELIGIBILITY CRITERIA FOR GLOBAL

CREDIT CARD

6.2 80

6 ACCEPTANCE OF GLOBAL DEBIT CARD 6.3 81

6 USAGE LIMITS FOR GLOBAL DEBIT CARD 6.4 82

7 WHICH BANK DO THEY HAVE ACCOUNTS 7.1 84

7 RECALL OF PUBLIC SECTOR BANKS 72 85



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7 WHETHER PEOPLE HEARD OF

SYNDICATE BANK

7.3 85

7 IMPORTANT FEATURE THAT ATTRACTS

CUSTOMERS

7.4 86

7 CUSTOMERS USE INTERNET BANKINGAND VISIT BRANCH

7.5 86

7 RESPONDENT IS AWARE OF SYNDICATE

BANK’S GLOBAL DEBIT AND CREDIT

CARDS

7.6 87

7 FEATURES THAT CUSTOMERS LOOK INTO

WHILE THEY APPROACH FOR LOAN

7.7 87

7 CUSTOMERS PREFER N.S.C OR F.D IN

BANK

7.8 88

8 COMPARISION OF DEPOSITS OF

SYNDICATE BANK VIS-À-VIS ICICI BANK

AND ANDHRA BANK FOR FISCAL YEAR

2010-2011

8.1 90


COMPARISION OF DEPOSITS

8.1 90

8 COMPARISION OF LOANS OF SYNDICATE

BANK VIS-À-VIS ICICI BANK AND ANDHRA

BANK FOR FISCAL YEAR 2010-2011

8.2 91


COMPARISION OF LOANS

8.2 92

8 COMPARISION OF NUMBER OF ATM’S OF

SYNDICATE BANK VIS-À-VIS ICICI BANK

AND ANDHRA BANK FOR FISCAL YEAR

2010-2011

8.3 93


NUMBER OF ATM’S

8.3 93

8 COMPARISION OF TOTAL BUSINESS OF

SYNDICATE BANK VIS-À-VIS OTHER

BANKS FOR FISCAL YEAR 2010-2011

8.4 94



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8 PICTORIAL REPRESENTATION OF TOTAL

BUSINESS

8.4 94

8 COMPARISION OF TOTAL DEPOSITS OF



8.5 95


DEPOSITS

8.5.1

8.5.2

95

96

8 COMPARISION OF TOTAL ADVANCES OF



8.6 97


RETAIL ADVANCES

8.6.1

8.6.2

97

98

8 COMPARISION OF TOTAL ADVANCES OF



8.7 99


RETAIL ADVANCES

8.7.1

8.7.2

99

100



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CHAPTER 1

INTRODUCTION TO THE PROJECT

1.1 RETAIL BANKING -----PRODUCTS AND SERVICES

A bank is a financial institution which deals with deposit and credit. It accepts deposits

from individuals, firms and companies, who have surplus of funds, at a lower interest rate and

lends it to the needy individuals, firms and companies at a higher interest rate.

The Products offered by the bank may be broadly classified into two categories based on

whether they are provided to individual customers or corporates. Products provided to individual

customers are called Retail Products.

Retail Banking is typical mass-market banking in which individual customers use local

branches of larger commercial banks. Services offered include savings and checking accounts,

mortgages, personal loans, debit/credit cards and deposits. Retail banking aims to be the one-stop

shop for as many financial services as possible on behalf of retail clients.

The main objective of the project is to study various products and services provided to

individuals by Syndicate Bank. Retail banking products and services provided by Syndicate bank

to individual customers includes loans, deposits, E-Banking, insurance related services, and

pension related services so on. Loans may be classified as personal, vehicle, housing, education,

gold etc…..Deposits may related to savings or current account. Deposits may be for different

terms. Different services such as Internet Banking, Syndicate Global Credit and Debit cards, Tele

Banking are studied. Study of above products and services provided to individuals pertains to

retail banking. The other objective of project is to compare various retail products provided by

Syndicate Bank with other public and private sector banks.



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1.2 OBJECTIVES OF THE PROJECT

1. To study the features of retail products of the bank namely deposits, loans, advances and other

remittance products.

2. To compare salient features of retail banking products of Syndicate Bank vis-a-vis other public

and private sector banks

3. To study the recall level of Syndicate Bank’s brand and its products and services.

4. To make suggestions if any based on above study

5. To find out the scope for further study/research on above topic.

1.3 SELECTION OF TOPIC

Banks provide various types of products and services which are useful to individual

customers as well as corporates. Products offered to individual customers are called retail

products and these include loans, deposits etc…By studying these products and services and

analyzing the responses of individual customers, the perception of customers on these products

can be known.

On the other hand, though corporate lending is powerful, risk involved in this type of lending is high and margin is less when compared to retail lending. In retail lending risk is

diversified as lending is done to different customers. By analyzing the behavior of different

customers any changes that are to be made in policies of management can be found out and any

suggestions required can be made.

By comparing products of Syndicate Bank with other products of other banks, the

position of bank can be known and required improvements can be made.



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1.4 METHODOLOGY

The study is primarily based on secondary data. However with a view to include personal

inputs a questionnaire has been administered personally to 33 respondents using simple random

sampling method.

SOURCES OF DATA:

Primary data: Structured Non-Disguised Questionnaire

Secondary data: Internet, Study Material available at bank,

and discussions with various bank officials.

1.5 SCOPE AND LIMITATIONS OF THE PROJECT

SCOPE:

1. The study was conducted under guidance of qualified professionals

2. Working at corporate level helped me to achieve fruitful experience.

3. Retail products such as Loans, Deposits, E-Banking are studied

4. Salient features of retail products of Syndicate Bank with other banks can be compared

LIMITATIONS:

1. Some of the data/bank records, being vital and sensitive, are not accessible.

2. Availability of time was other limitation. Time available to study different retail

products is very less.

3. The Study is conducted and concluded considering the prevailing condition, which

may be subjected to change in future.



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CHAPTER 2

BANKING INDUSTRY

2.1 INTRODUCTION TO BANKING INDUSTRY

A Bank is an establishment authorised by government to accept deposits, pay interest,

clear cheques make loans act as an intermediary in financial transactions and provides other

financial services to customers who may individuals or corporates. Banks act as intermediary

between people having surplus money and those requiring money for business activities.

Banks have played a critical role in the economic development of some developed

countries such as Japan and Germany and most of the emerging economies including India.

Banks today are important not just from the point of view of economic growth, but also for

financial stability.

In emerging economies, banks are special for three important reasons. First, they take a

leading role in developing other financial intermediaries and markets. Second, due to the absence

of well-developed equity and bond markets, the corporate sector depends heavily on banks to

meet its financing needs. Finally, in emerging markets such as India, banks cater to the needs of

a vast number of savers from the household sectors, who prefer assured income, liquidity and

safety of funds, because of their inadequate capacity to manage financial risks.

Forms of banking have changed over the years and evolved with the needs of the

economy. The transformation of the banking system has been brought about by deregulation,

technological innovation and globalization.

While banks have been expanding into areas which were traditionally out of bounds for

them, non-bank intermediaries have begun to perform many of the functions of banks. Banks

thus compete not only among themselves, but also with nonbank financial intermediaries, and

over the years, this competition has grown in intensity.



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2.2 HISTORY OF BANKING IN INDIA

DEFINITION:

Banking is defined as accepting for the purpose of lending or investment of deposits of

money received from the public, repayable on demand or otherwise and withdrawable by

cheque, draft, order or otherwise.

Bank is a lawful organisation which accepts deposits that can be withdrawn on demand. It

also lends money to individuals and business houses that need it. Banks encourage savings

habit among people and thereby make funds available for productive purpose.

Without a sound and effective banking system in India it cannot have a healthy economy.

The banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors.

In India though there is presence of unorganized sector of money market comprising of

money lenders organised sector such as banks have grown significantly in recent times. Today

there are large numbers of public sector and private sector banks in India.

For the past three decades India's banking system has several outstanding achievements to

its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans

or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners

of the country. This is one of the main reasons of India's growth process.

The first bank in India, though conservative, was established in 1786. From 1786 till today,

the journey of Indian Banking System can be segregated into three distinct phases. They are as

mentioned below:

Early phase from 1786 to 1969 of Indian BanksNationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking

Sector Reforms after 1991.



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PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab

National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913

Bank of India, Central Bank of India, Indian Bank and Bank of Mysore were set up.Reserve

Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic

failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To

streamline the functioning and activities of commercial banks, the Government of India came up

with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act

1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with

extensive powers for the supervision of banking in India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit

mobilisation was slow. Abreast of it the savings bank facility provided by the Postal departmentwas comparatively safer. Moreover, funds were largely given to traders.

PHASE II:

Government took major steps in this Indian Banking Sector Reform after independence. In

1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale

specially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent

of RBI and to handle banking transactions of the Union and State Governments all over the

country.

Seven banks forming subsidiary of State Bank of India were nationalised in 1960 on 19th

July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime

Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was

nationalised.



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Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with

seven more banks. This step brought 80% of the banking segment in India under Government

ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in

the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalisation of State Bank of India.

1959: Nationalisation of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalisation of 14 major banks.

1971: Creation of credit guarantee corporation.1975: Creation of regional rural banks.

1980: Nationalisation of seven banks with deposits over 200 crore.

PHASE III:

This Phase has introduced many more products and facilities in banking sector in its

reform measure.In1991 under chairmanship of M.Narshimham, a committee was set up by his

name which worked for liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to

give a satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilienceThis is all due to a flexible

exchange rate regime, the foreign reserves are high, the capital account is not yet fully

convertible, and banks and their customers have limited foreign exchange exposure.



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2.3 BANKING SYSTEM IN INDIA

Banks are the financial backbone of any country’s economy. Without a sound and

effective banking system, India cannot have a healthy economy. A bank is a financial

institution which deals with deposit and credit. It accepts deposits from individuals, firms and

companies, who have surplus of funds, at a lower interest rate and lends it to the needy

individuals, firms and companies at a higher interest rate. The disparity between the

borrowing rate and lending rate forms the sources of profit for the banks.

Banks facilitates business transactions through receipts and payments by cheques

instead of currency. Banks help in national development by providing credit to farmers, small

scale industries, self employed people and large business houses which lead to balanced

economic development in the country.

For the past three decades, India’s banking system has several outstanding

achievements to its credit. The Banks are no longer confined only to metropolitans or

cosmopolitans. In fact, Indian banks have reached even to the remote corners of the country.

This is one of the main reasons of India’s growth process.

Not long ago, an account holder has to wait for hours at the bank counters to deposit or

to withdraw his own money. Today, he can do so in few minutes in an ATM. In addition to

that, core banking has facilitated the customers to operate their accounts in any nearby branch

without any inconvenience.

Many new services like Mobile banking, E-banking etc have given a new dimension to

the banking industry by making it more customers oriented.



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2.4 BANKING STRUCTURE IN INDIA

PICTORIAL REPRESENTATION OF BANKING STRUCTURE IN INDIA(as on 31st March 2009)

FIG NO 2.1

BANKS IN INDIA:

Banks in India comprise commercial banks and co-operative banks. Commercial banks

form the bedrock of the Indian financial system, currently accounting for more than three-fourths

RESERVE BANK OF INDIA

(CENTRAL BANK AND SUPREME

MONETARY AUTHORITY)

NATIONALISED

BANKS (19)

S.B.I AND ITS

ASSOCIATES (8)

NEW

PRIVATE

SECTOR

BANKS

(7)

OLD

PRIVATE

SECTOR

BANKS

(17)

REGIONAL

RURAL

BANKS

(96)

PUBLIC

SECTOR

BANKS

(27)

FOREIGN

BANKS

(32)

PRIVATE

SECTOR

BANKS

(24)

RURAL

COOPERATIVE

BANKS (109497)

URBAN

COOPERATIVE

BANKS (1813)

COOPERATIVE

BANKS 109310

COMMERCIAL

BANKS 179



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of all financial institutions' assets. CBs are present throughout India, and their branches, having

grown more than four-fold in the last 40 years now number more than 80,500 across the country.

BANKING REGULATOR:

The Reserve Bank of India (RBI) is the central banking and monetary authority of India,

and also acts as the regulator and supervisor of commercial banks.

2.5 FUNCTIONS OF COMMERCIAL BANKS

Commercial Banks are banking institutions that accept deposits and grant short term and long

term loans to individual customers and business enterprises.

The main functions of a commercial bank can be segregated into three main areas: (i)

Payment System (ii) Financial Intermediation (iii) Financial Services.

FIG 2.2

FUNCTIONS OF COMMERCIAL BANKS

FINANCIAL

SERVICES

PAYMENT

SYSTEM

FINANCIAL

INTERMEDIATION



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PAYMENT SYSTEM:

Banks are at the core of the payments system in an economy. A payment refers to the

means by which financial transactions are settled. A fundamental method by which banks help in

settling the financial transaction process is by issuing and paying cheques issued on behalf of

customers. Further, in modern banking, the payments system also involves electronic banking,

wire transfers, settlement of credit card transactions, etc. In all such transactions, banks play a

critical role.

FINANCIAL INTERMEDIATION:

The second principal function of a bank is to take different types of deposits from

customers and then lend these funds to borrowers, in other words, financial intermediation. In

financial terms, bank deposits represent the banks' liabilities, while loans disbursed, and

investments made by banks are their assets. Bank deposits serve the useful purpose of addressing

the needs of depositors, who want to ensure liquidity, safety as well as returns in the form of

interest. On the other hand, bank loans and investments made by banks play an important

function in channeling funds into profitable as well as socially productive uses.

FINANCIAL SERVICES:

In addition to acting as financial intermediaries, banks today are increasingly involved

with offering customers a wide variety of financial services including investment banking,

insurance-related services, government-related business, foreign exchange businesses, wealth

management services, etc. Income from providing such services improves a bank's profitability.



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Briefly the functions of commercial banks are

Accepting deposits and granting loans and advances

Issuing letters of credit, travellers’ cheque etc…

Providing customers with the facilities of foreign exchange dealings

Transferring money from one account to other; from one branch to another by

means of cheque, demand draft, internet banking and so on

Standing guarantee on behalf of customers, for making payment for purchase of

goods, machinery, vehicles etc…

Providing information on credit worthiness of customers



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CHAPTER 3

INTRODUCTION TO SYNDICATE BANK

3.1 ABOUT SYNDICATE BANK

Founded in 1925 Syndicate Bank India is one of the major public sector banks in

Southern India. It is headquartered in Manipal, Karnataka.

Syndicate Bank was founded in 1925. The Bank started its journey at Udupi in Coastal

Karnataka. At the time of its inception, the name of bank was Canara Industrial and Banking

Syndicate Limited. The founders of Syndicate bank were Vaman Srinivas Kudva, Upendra

Ananth Pai, and Dr T.M.A Pai. Their objective was to extend financial assistance to the local

weavers who were crippled by crisis in the handloom industry through mobilizing small savings

from the community. The Bank started operating with capital of only Rs 8,000. The Bank is one

of the oldest and premier commercial banks in India.

The Bank was renamed as Syndicate Bank limited in 1964 and its headquarters are

moved to Manipal.

Syndicate Bank was nationalised in 1969.Since that time the bank has made significant

progress in the Indian commercial banking sector. With the glorious history of high quality

customer services spanning more than 80 years, Syndicate Bank has built a strong clientele

comprising both retail and institutional clients. The Bank is first in India to introduce the Pigmy

deposit scheme where the agents of the bank visit door to door receiving deposits. The Bank has

currently more than 2000 branches and most of the branches are migrated to Core banking

Solutions.

The bank offers a wide variety of products and services comprising finance and

insurance, corporate banking, consumer banking, private equity, asset management, investment

management, credit cards and mortgages.



30 | P a g e

The Bank is listed on following stock exchanges:

1) National Stock Exchange

2) Bombay Stock Exchange

3) Mangalore Stock Exchange

4) Bangalore Stock Exchange

3.2 MERGERS WITH SYNDICATE BANK

The following are the two major banks that have merged with Syndicate bank

1) Southern India Apex Bank Limited

2) Maharashtra Apex Bank Limited

Till date 20 banks have merged with Syndicate Bank.

The progress of Syndicate Bank has been synonymous with the phase of progressive

banking in India. Spanning over 80 years of pioneering expertise, the Bank has created for itself

a solid customer base comprising customers of two or three generations. Being firmly rooted in

rural India and understanding the grass root realities, the Bank's perception had vision of future

India. It has been propagating innovations in Banking and also has been receptive to new ideas,

without however getting uprooted from its distinctive socio-economic and cultural ethos. Its

philosophy of growth by mutual sustenance of both the Bank and the people has paid rich

dividends. The Bank has been operating as a catalyst of development across the country with

particular reference to the common man at the individual level and in rural/semi urban centres at

the area level.

The Bank is well equipped to meet the challenges of the 21st century in the areas of

information technology, knowledge and competition. A comprehensive IT plan is being put in

place and the skills and knowledge of the Bank's personnel are being upgraded through a variety

of training programmes to promote customer delight in every sphere of its activity. The Bank has

launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500

of our strategic branches with their ATMs are being networked nationwide over a 4 year

period. The Bank is pioneer among Public Sector Banks on launching CBS. Syndicate Bank has



31 | P a g e

already achieved CBS implementation among all its branches. Thus, the bank is 100% CBS

enabled.

3.3 VISION

Consolidating position as a premier public sector bank with increased global outreach emerging

as a strong vibrant responsive competitive bank embracing the state of art technology harnessing

human potential and effectively participating in the process of nation building serving its

constituents and stakeholders as a Faithfully and Friendly partner.

3.4 MISSION

To achieve global deposits on low cost resources by strategic initiatives including branch

expansion, aggressive marketing and active involvement of everyone.

3.5 TAGLINE

Faithful and Friendly is the tagline of Syndicate Bank.

3.6 LOGO

http://en.wikipedia.org/wiki/File:Syndicate_Bank_Logo.png



32 | P a g e

3.7 MILESTONES

1925:

On 10.11.1925, the business of the Bank commenced in Udupi with the name "Canara Industrial

and Banking Syndicate Ltd.," a joint Stock Company with just one employee.

1928:

First branch of the Bank opened at Brahmavar in Dakshina Kannada District.

1937:

Bank became a member of the Clearing House for the first time at Bombay.

1946:

29 branches opened in a single day in rural areas.

1953:

Took over the assets and liabilities of 2 Local Banks viz. Maharashtra Apex Bank Ltd. and

Southern India Apex Bank Ltd. 20 Banks merged with the Bank during the period 1953-1964.

1957:

100th branch opened at Ilkal in Karnataka.

1962:

Entered Foreign Exchange business by opening Foreign Exchange Department at Bombay

1963:

Name of the Bank changed from "Canara Industrial & Banking Syndicate Ltd." to "Syndicate

Bank Limited". Head Office was shifted to Manipal on 19.4.1964.



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1966:

Economic Research Department set up. One of the first few Banks to emphasise on research in

Banking even before nationalisation

1969:

Bank had 306 branches at the time of nationalisation of which 66% were in Rural and Semi

Urban centres.

Opened a branch at Port Blair in Andaman and Nicobar islands

1970:

First Staff Training College started at Head Office

1971:

First specialised branch in Foreign Exchange opened at Delhi.

1972:

Opened a branch at Lakshadweep islands

1976:

First overseas branch opened at London on 17.8.76.

1983:

Took up management of Al Shabei Finance and Exchange Co. in Doha

1984:

1000th branch opened at Delhi Hauz Khas

1989:

1500th branch opened at Kanakumbi



34 | P a g e

1991:

First Specialised Industrial Finance Branch opened at Mumbai.

1995:

First Specialised Housing Finance Branch opened at Mangalore

1999:

Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders

2000:

First Specialised Capital Market Services branch opened at Mumbai

2001:

First branch under CBS (Core Banking Solution) started operation at Bangalore.

2002:

Centralised Banking Solution under the brand name "Syndicate-e-banking" launched at Delhi,

Mumbai, Bangalore and Manipal.

2003:

Bank enters into MOU with Bajaj Allianz for distribution of Life Insurance products.

2004:

Utility bill payment services through Internet banking introduced.

Introduced On-line reservation of Railway Tickets through Indian Railway Catering & Tourism

Corporation Ltd. (IRCTC) for Internet banking customers of our Bank

Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of Rs.40

through Book building route Bank collected Rs.250 Crore and the issue was oversubscribed by

29.275 times.



35 | P a g e

2005:

Amalgamation of 4 Regional Rural Banks of Karnataka to form Karnataka Vikas Grameena

Bank with Head Office at Dharwad

2006:

500th Branch of Syndicate Bank in Karnataka opened at Navnagar, Bagalkot.

2000th Branch of Syndicate Bank opened at Tondiarpet, Chennai on 23.03.2006.

Inauguration of SyndBank Services Limited, the 1st BPO outfit of a Nationalised Bank, a wholly

owned subsidiary of Syndicate Bank & 525th CBS Branch by Honourable Union Minister of

Finance, Sri P Chidambaram on 24.03.2006 at Bangalore.

2006th Branch of Syndicate Bank opened at Gangtok, Sikkim on 27.03.2006

First Branch opened in Arunachal Pradesh at Ita Nagar on 16th October 2006

2007:

First Branch opened in Nagaland at Dimapur on 17.03.2007

First Branch opened in Mizoram in Aizawl on 29.03.2007

2008:

First Branch opened in Tripura at Agarthala on 11.01.2008

Branch network expanded to all States and UTs except Manipur & Daman Diu

2009-10:

The Bank opened 3 new Regional Offices at Moradabad, Jaipur and Guwahati for better

administrative cover over branches in the respective jurisdictions.

2010-11:

The Bank opened 135 branches under the Financial Inclusion programme of the Govt. of India



36 | P a g e

CHAPTER-4

DEPOSITS

A deposit account is a current account, savings account, or other type of bank account, at

a banking institution that allows money to be deposited and withdrawn by the account holder.

These transactions are recorded on the bank's books and the resulting balance is recorded as

a liability for the bank and represent the amount owed by the bank to the customer. Some banks

charge a fee for this service, while others may pay the customer interest on the funds deposited.

Traditionally banks in India have three types of deposit accounts, namely Current

Accounts, Saving Banking Accounts and Term Deposits.

4.1 CURRENT ACCOUNT

Current accounts are used mainly by businessmen and are not generally used for the

purpose of investment. These deposits are the most liquid deposits and there are no limits for

number of transactions or the amount of transactions in a day. Most of the current account are

firm / company accounts. Cheque book facility is provided and the account holder can deposit

all types of the cheques and drafts in their name or endorsed in their favour by third parties. No

interest is paid by banks on these accounts. On the other hand, banks charge service charges, on

such accounts.

Current Accounts can be opened by individuals, partnership firms, private and public

limited companies, HUFs/specified associates, societies, trusts, etc.

The Bank requires a satisfactory introduction of the person/s opening the account by a

person acceptable to the Bank.

Minimum balance as stipulated from time to time will be required to be maintained.No interest is paid on credit balances kept in current account.

http://en.wikipedia.org/wiki/Current_account_(banking)

http://en.wikipedia.org/wiki/Savings_account

http://en.wikipedia.org/wiki/Bank

http://en.wikipedia.org/wiki/Money

http://en.wikipedia.org/wiki/Liability_(financial_accounting)

http://en.wikipedia.org/wiki/Interest_(finance)

http://en.wikipedia.org/wiki/Interest_(finance)

http://en.wikipedia.org/wiki/Liability_(financial_accounting)



http://en.wikipedia.org/wiki/Savings_account

http://en.wikipedia.org/wiki/Current_account_(banking)



37 | P a g e

4.2 SAVINGS BANK ACCOUNT

Savings deposits / accounts are one of the most popular deposits for individual

accounts. These accounts not only provide cheque facility but also have lot of flexibility for

deposits and withdrawal of funds from the account. Most of the banks have rules for the

maximum number of withdrawals in a period and the maximum amount of withdrawal, but

hardly any bank enforces these. However, banks have every right to enforce such restrictions if

it is felt that the account is being misused as a current account. The interest on these accounts at

present is regulated by Reserve Bank of India.

4.2.1 SAVINGS ACCOUNT

Savings accounts are designed to help the individuals (personal customers) to inculcate

the habit of saving money and to meet their future requirement of money. Amounts can

be deposited/ withdrawn from these accounts by way of cheques / withdrawal slips. It

helps the customers to keep minimum cash at home besides earning interest.

These accounts can be opened by eligible person/s and certain organisations / agencies

(as approved by the Reserve Bank of India (RBI)

The Bank requires a satisfactory introduction of the person/s opening the account by a

person acceptable to the Bank.

The Bank will provide to the prospective customers details of the documents required for

identification of the person/s opening the account in addition to a satisfactory

introduction.

The account holder is required to maintain certain minimum balance in the account, as

specified by the Bank from time to time according to the population category of the

branch concerned and also depending on, whether account holder wants to avail the

cheque book facility or not.

Interest at 4% p.a. is presently paid on half yearly basis, calculated on a daily product

basis, with a minimum of `1/-.



38 | P a g e

4.2.2 SYND SAMANYA

ELIGIBILITY:

All individuals are eligible to open Synd Samanya account.

MINIMUM BALANCE:

Minimum balance to be maintained in Synd Samanya account is zero.

i.e. Synd Samanya account holder need not maintain any balance in his account.

RATE OF INTEREST:

Rate of interest is 4%

CASH WITHDRAWAL:

50 transactions per year can be performed by the customer at branch counter.

Service charge of Rs.10/- per transaction shall be levied if the customer exceeds the stipulated

number of transactions in his account. There is no limit on number of ATM transactions.

CHEQUE BOOK:

Cheque book will be made available if minimum balance is maintained according to

Savings Bank account norms.



39 | P a g e

4.2.3 PREMIUM SAVINGS ACCOUNT

The Bank has introduced a Premium Savings Account at e-banking branches that combines full

safety, easy liquidity and highest possible interest.

The salient features of the scheme are as under

A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures that

while the customer's money earns solid interest as a fixed deposit, it turns liquid to meet

his/her urgent needs. That too at no extra cost.

Average monthly balance of Rs.10000/-to be maintained in the Premium Savings

Account.

Balance available in the account in excess of Rs.10000/-on any day gets automatically

swept out into a fixed deposit for 180 days in units of Rs.1000/-.

In the event of shortfall in SB for meeting customer’s clearing cheques or for other urgent

needs, the fixed deposit is swept back into the Premium Savings Account in required

number of units of Rs. 1000/- free of cost.

No penalty is charged for breaking the fixed deposit prematurely.



40 | P a g e

4.3 TERM DEPOSIT

A deposit held at a financial institution that has a fixed term. These are generally short-term

with maturities ranging anywhere from a month to a few years. When a term deposit is

purchased, the lender (the customer) understands that the money can only be withdrawn after the

term has ended or by giving a predetermined number of days notice.

Term deposits are an extremely safe investment and are therefore very appealing to

conservative, low-risk investors. By having the money tied up you'll generally get a higher rate

with a term deposit compared with a demand deposit.

4.3.1 FIXED DEPOSIT

Fixed Deposit is a regular interest earning scheme. It is a flexible and convenient deposit

scheme which ensures that your money never remains idle. Even very small amounts earn

interest for very short periods. Yes. You can deposit an amount of just Rs.1000/- for a period as

short as 15 days and make it grow.

Salient features of the scheme are:

Minimum deposit Rs.1000/-

Deposits accepted for periods ranging from 15 days to 120 months.

There is an option available for receiving monthly interest at discounted rates or quarterly

interest.

Premature withdrawal of deposit is permitted any time subject to payment of prescribed

penalty.

Loans available up to a maximum of 95% of the deposit amount depending on the length

of the unexpired period of the deposit.



41 | P a g e

4.3.2 RECURRING DEPOSIT

It is an ideal scheme of monthly savings for salaried people, businessmen, professionals

etc. Small amounts saved every month for a long period come in handy to meet large financial

commitments in the future. These kinds of deposits are most suitable for people who do not have

lump sum amount of savings, but are ready to save a small amount every month. Normally, such

deposits earn interest on the amount already deposited


Minimum deposit is Rs.100/-per month.

Period of deposit ranges from 12 months to 10 years.

Delayed payments of installments are accepted with nominal penalty.

Monthly minimum balance in the account earns compound interest every quarter.

No tax is deducted from the interest on the deposit.

Loans up to maximum of 95% of the deposit amount available depending on the length of

the unexpired period of the deposit.

4.3.3 SENIOR CITIZENS’ SECURITY DEPOSIT

It is a highly beneficial value added scheme, specifically designed for the benefit of our

respected Senior Citizens (above 60 years of age), this deposit scheme is truly special in

character, carrying an interest of 0.5% over and above the normal rate besides offering numerous

value additions.


Minimum amount of deposit is Rs.1000/-

Period of Deposits is 12 to 120 months.



42 | P a g e

Interest on the deposit is 0.5% above the normal rate.

Interest payable at monthly (discounted rates) or quarterly intervals.

Premature withdrawal of deposit is permitted any time without levy of penalty. Accounts

closed before completion of 12 months are not eligible for additional interest of 0.5%.

Exemption from maintaining prescribed minimum balance in savings Bank account.

Free Remittance Facility to any of our branches up to a specified limit.

4.3.4 SYNDPIGMY 1928 DEPOSIT

Little drops of water make a mighty ocean .This deposit scheme suits the needs of everyone viz. businessmen, professionals, wage earners, teachers, salaried personnel, traders,

housewives etc. Customers can save money with the Bank regularly depending on your

convenience and they need not visit the Bank for doing so. The Bank's authorised Agent collects

your savings at your doorsteps at regular intervals. Their money silently grows over 63 months

into a lump sum for meeting your future commitments e.g. daughter's marriage, children's

education, family functions, house purchase etc.


Period of the scheme is 63 months.

Amount as low as Re.1/- per day can be saved daily / weekly / monthly.

No penalty even if depositor is unable to pay installments regularly.

Deposit account can be closed prematurely subject to certain conditions.

Loans up to a maximum of 75% of the balance in the Pigmy account available.



43 | P a g e

4.3.5 SYND PIGMY 2006 DEPOSIT

This scheme is comparable to the Bank’s Pigmy (1928) Deposit Scheme, but with added

features for increased customer compatibility is being launched from 02.10.2006.

The Bank’s Authorized agent will collect your savings at your doorsteps at daily or less

frequent intervals in tune with your convenience. Any day after 12 months of opening the

Deposit, the amount equal to or exceeding Rs. 5000/- in the Deposit Account, can be transferred

to a term deposit account at the ruling interest rate subject to the terms of the Scheme, listed

below:

1. Minimum Contribution per occasion : Rs.5/-

2. Period of Deposit : 72 months3. Premature refund :

i) before 24 months: Permitted with penalty and without interest.

ii) 24 months & above : Interest on deposit will be paid at

rates ranging from 2 % to 5% (as fixed by the Bank

from time to time), depending upon the period for which

the deposit has remained with Bank.

4. Loan /Overdraft : Loan/OD available up to 75 % of the outstanding balance



44 | P a g e

4.4 STATISTICS OF DEPOSITS

SECTOR WISE DEPOSITS FOR YEAR 2010-2011

DEPOSIT AMOUNT(Rs in Crore)

Current Account and Savings Account

(CASA)Deposit

41945

Term Deposit 135306

TABLE NO 4.1

PICTORIAL REPRESENTATION OF DEPOSITS

FIG NO 4.1

41945

135306

DEPOSIT AMOUNT(Rs in crore)

CASA

TERM



45 | P a g e

CHAPTER 5

LOANS

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of

financial assets over time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called

the principal, from the lender, and is obligated to pay back or repay an equal amount of money to

the lender at a later time. Typically, the money is paid back in regular installments, or partial

repayments; in an annuity, each installment is the same amount.

The loan is generally provided at a cost, referred to as interest on the debt, which

provides an incentive for the lender to engage in the loan.

Acting as a provider of loans is one of the principal tasks for financial institutions. For

other institutions, issuing of debt contracts such as bonds is a typical source of funding.

TYPES OF LOANS

SECURED LOAN:

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property)

as collateral for the loan.

A subsidized loan is a loan that will not gain interest before you begin to pay it.

An unsubsidized loan is a loan that gains interest the day of disbursement.

A mortgage loan is a very common type of debt instrument, used by many individuals to

purchase housing. In this arrangement, the money is used to purchase the property. The financial

institution, however, is given security until the mortgage is paid off in full. If the

borrower defaults on the loan, the bank would have the legal right to repossess the house and sell

it, to recover sums owing to it.

http://en.wikipedia.org/wiki/Debt

http://en.wikipedia.org/wiki/Asset

http://en.wiktionary.org/wiki/lender

http://en.wiktionary.org/wiki/borrower


http://en.wikipedia.org/wiki/Annuity_(finance_theory)

http://en.wikipedia.org/wiki/Interest


http://en.wikipedia.org/wiki/Financial_institution


http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Secured_loan

http://en.wikipedia.org/wiki/Pledge_(law)

http://en.wikipedia.org/wiki/Collateral_(finance)

http://en.wikipedia.org/w/index.php?title=Subsidized_loan&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Unsubsidized_loan&action=edit&redlink=1

http://en.wikipedia.org/wiki/Mortgage_loan

http://en.wikipedia.org/wiki/House

http://en.wikipedia.org/wiki/Default_(finance)

http://en.wikipedia.org/wiki/Default_(finance)

http://en.wikipedia.org/wiki/House

http://en.wikipedia.org/wiki/Mortgage_loan

http://en.wikipedia.org/w/index.php?title=Unsubsidized_loan&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Subsidized_loan&action=edit&redlink=1

http://en.wikipedia.org/wiki/Collateral_(finance)

http://en.wikipedia.org/wiki/Pledge_(law)

http://en.wikipedia.org/wiki/Secured_loan

http://en.wikipedia.org/wiki/Bond_(finance)


http://en.wikipedia.org/wiki/Financial_institution


http://en.wikipedia.org/wiki/Interest

http://en.wikipedia.org/wiki/Annuity_(finance_theory)


http://en.wiktionary.org/wiki/borrower

http://en.wiktionary.org/wiki/lender

http://en.wikipedia.org/wiki/Asset




46 | P a g e

UNSECURED LOAN:

Unsecured loans are monetary loans that are not secured against the borrower's assets. These

may be available from financial institutions under many different marketing packages:

credit card debt

personal loans

bank overdrafts

credit facilities or lines of credit

The interest rates applicable to these different forms may vary depending on the lender and the

borrower.

DEMAND LOAN:

Demand loans are short term loans (typically no more than 180 days) that are a typical in

that they do not have fixed dates for repayment and carry a floating interest rate which varies

according to the prime rate. They can be "called" for repayment by the lending institution at any

time. Demand loans may be unsecured or secured.

http://en.wikipedia.org/wiki/Credit_card


http://en.wikipedia.org/wiki/Overdraft

http://en.wikipedia.org/wiki/Interest_rate

http://en.wikipedia.org/wiki/Interest_rate

http://en.wikipedia.org/wiki/Overdraft


http://en.wikipedia.org/wiki/Credit_card



47 | P a g e

5.1 SYND SARAL

5.1.1 SYND SARAL (SALARIED CLASS)

PURPOSE:

To meet any genuine personal credit needs

FACILITY:

Demand loan (Maximum Tenure 60 Months for salaried and Non Salaried)

ODC----Maximum 2 Lakhs

TARGET GROUP:

Permanent employees of State/Central government/Public sector/Reputed Private Sector

Companies/Teachers/Professors/Pensioner

AMOUNT OF FINANCE:

Salaried class in service: Not exceeding 12 months Gross Salary

Salaried class Retired: Not exceeding 10 months Gross Pension

REQUIREMENTS:

Salary/Pension credited at branch level

Irrevocable letter from the employer

Irrevocable letter from the surety in case his salary is credited with Syndicate Bank.

SURETY:

3rd

party acceptable to the Sanctioning Authority



48 | P a g e

INTEREST:

BR+4.75% where the salary is credited at the branch

CUTBACK:

Cut back not to exceed 50% of gross salary /60% in case of voluntary contributions like

LIC etc/70% in case Spouse has separate income from regular employment

And for pensioners it is 50%

INTEREST CONCESSION:

1% concession in applicable rate is available to employees of Government

Department/Public sector Undertaking/Corporations and Blue Chip Companies, where

there is tie up;

5.1.2 SYND SARAL (NON SALARIED CLASS)

PURPOSE:


FACILITY:

Demand Loan/Other Secured Loan --- Maximum Tenure 60 months

TARGET GROUP:

Professionals /Doctors/Engineers/Lawyer/CA’s and other non-salaried class etc…



49 | P a g e

AMOUNT OF FINANCE:

If latest Income Tax Assessment Order is submitted 50% of Gross Annual Income if last

3 years Income Tax Assessment Orders are submitted.

If UREM is offered as security 60% of the value of the property

REQUIREMENTS:

Valid mortgage is to be created in case the applicant is unable to produce proof of

income.

Manager can assess the income in case no proof of income is produced

Post dated Cheques are accepted

SURETY:

3rd party acceptable to the Sanctioning Authority

INTEREST:

BR+ 4.75%

CUTBACK:

Cut back not to exceed 50% of gross salary

It should not exceed 60% in case of voluntary contributions like LIC etc

It should not exceed 70% in case Spouse has separate income from regular employment




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5.1.3 SYND SARAL (ALL TYPES OF BORROWERS)

PURPOSE:


FACILITY:

Demand Loan/Other Secured Loan --- Maximum Tenure 60 months

Secured Over Draft --- Renewable every 2 years

TARGET GROUP:

All types of borrowers offering National Savings Certificate/Life InsuranceCorporation/IVP/Kisan Vikas Patra/RBI bonds or UREM of property as security

AMOUNT OF FINANCE:

National Savings Certificate/Kisan Vikas Patra:80% of purchase price if completed 24

months & 65% of purchase price if completed 12 months but less than 24 months or

80% of purchase value in case of RBI relief bond or

80% of Standard Value of LIP

REQUIREMENTS:

The genuiness of the securities offered (National Savings Certificate/LIC/IVP/Kisan

Vikas Patra/RBI relief bonds) are verified.

Security should have completed the minimum lock in period.

SURETY:

3rd party acceptable to the Sanctioning Authority

INTEREST:

BR+4.75% for loans and overdrafts under above secured loans



51 | P a g e

CUTBACK:

Cut back not to exceed 50% of gross salary

It should not exceed 60% in case of voluntary contributions like LIC etc

It should not exceed 70% in case Spouse has separate income from regular employment


5.1.4 SYND SARAL (CONSUMER DURABLES)

PURPOSE:

To purchase consumer durables

FACILITY:

Other Secured Loans

TENURE:

Not more than 60 Equated Monthly Installments

TARGET GROUP:

Salaried and Non-Salaried Class

REQUIREMENTS:

Salary is to be credited or undertaking letter from the employer is to be obtained.

Quotations for the items proposed to be purchased is to be submitted

Declaration for having purchased the items to be obtained



52 | P a g e

QUANTUM LOAN CALCULATION:

Salaried class:80% of invoice or 10 Months Gross Salary whichever is less Maximum Rs

2 Lakh;

For a Pensioner-Maximum Rs 1 lakh

Non-Salaried:80% of the invoice or 50% of the gross annual income as per Income Tax

Assessment Order or Return filed.

RATE OF INTEREST:

BR+4.75%

SURETY:

3rd party acceptable to the Bank

CUTBACK:

Cut Back not to exceed 50% of gross salary

60% in case of voluntary contributions like LIC etc…

Cut back can go up to 70% in case Spouse has separate income from regular

employment.

Not to exceed 50% in case of pensioners



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5.1.5 SYND SARAL (WOMEN)

PURPOSE:


FACILITY:

Demand Loan

TENURE:

Tenure of the loan is 84 months

TARGET GROUP:

Women employees and self employed in the age group of 20 to 50

Salaried:

Permanent employees of State/Central Government/Public Sector/Reputed Private

Sector Companies/Teachers/Professors

Non-salaried class:

Professionals/Self Employed/ C A’s and other non-salaried class etc… including

House-Wife

REQUIREMENTS:

Salary/Pension credited at the branch level

Irrevocable letter from the employer to deduct and remit the installments

Irrevocable letter from surety in case his salary is credited with us



54 | P a g e

QUANTUM OF FINANCE:

If salary is credited at the branch – Not exceeding 12 months Gross salary

If salary is not credited at branch-Not exceeding 10 months of Gross salary

If maintaining a Recurring Deposit account -10 months Recurring Deposit

contribution

If having a Savings Bank account – 6 months average monthly balance maintained

at the Savings Bank account

If professional and Self Employed- 50% of gross annual income

MAXIMUM/MINIMUM:

Minimum loan – Rs 10,000/-

Maximum loan- Rs 1,50,000/ -

SURETY:

Earning family member or a 3rd

party acceptable to the Sanctioning Authority

INTEREST:

BR+4.5%

CUT BACK:

Not to exceed 60% in case salary is not credited with us

70% in case salary is credited with us

75% if spouse has separate income from regular employment

SERVICE CHARGES:

Up to loan of 50,000/- nil

Above Rs 50,000/- Service Charge of Rs 100/- is to be collected



55 | P a g e

5.1.6 SYNDSARAL (AGRICULTURISTS)

PURPOSE:

To meet any genuine credit requirements/purchase consumer durables like TV, Fridge,Washing Machine, Video /Audio Equipment etc…

FACILITY:

Demand Loans (for clean loans)/Other Secured Loans (for purchase of consumer

durables /vehicles)

ELIGIBILITY:

Agriculturists. Clean loans may be sanctioned to existing customers only who have

availed some facility with the bank and have mortgaged the property. For new clients, the facility

is to be extended only on secured basis.

QUANTUM:

Demand loan: 50% of average gross annual income or Rs 1.00 Lakh, whichever is less,

where proof of income from Revenue authorities is submitted. Where proof of income from

Revenue Authorities is not available , before sanctioning loan, Manager shall make a fair and

realistic assessment of the party’s income after getting necessary details and satisfy himself

about the income of the borrower , his repayment capacity etc… duly justifying his decision,

before sanctioning loan. In such event, quantum of loan is restricted 50% of the gross annual

income or Rs 0.25 lakh whichever is less.

Other Secured Loan: 80% of the consumer durable/vehicle to be purchased

or 50% of annual income or Rs 0.50 lakh whichever is less.



56 | P a g e

REPAYMENT:

Not exceeding 3 years. The repayment may be fixed to coincide with the periodicity of

his income, viz .,monthly/quarterly/half-yearly/yearly

RATE OF INTEREST:

BR+4.75% for Demand Loans and BR+4.75% for Other Secured Loans (Compounded

monthly)

GUARANTEE:

Good third party guarantee acceptable to the Bank.

CUTBACK:

Not applicable.

SERVICE CHARGES:

For loans up to Rs 25,000/- Rs 100/-

Above Rs 25,000/- and up to Rs 2.00 lakhs Rs 2.50 per thousand or part thereof with a

minimum of Rs 250/-

TABLE NO 5.1

STATISTICS FOR SYND SARAL:

For Fiscal Year 2010-2011 loans under Synd Saral Scheme is 5326.08 Crores which

accounts for 5.46% of total loans give by Syndicate Bank.



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5.2 SYNDMORTGAGE

PURPOSE:

For any genuine business/personal credit

Needs including purpose of residential sites

FACILITY:

Other Secured Loans (Mortgage)

OUTLETS:

All branches to extend this facility. Clearance shall be obtained from RO.

TARGET GROUP:

Bonafide owners of residential or commercial property

ELIGIBILITY CRITERIA:

Salaried class, agriculturist and business community

FACILITY:

Other Secured Loans: Maximum of 50 Lakhs

QUANTUM OF FINANCE:

Salaried: 60 months gross salary including other incomes if any (proofs shall be

obtained); 60% cutback & undertaking letter from employer required.

Non Salaried: 5 times the annual income

< 5 Lakhs through holistic approach;

>5 Lakhs average of last 3 years income-cutback 45%



58 | P a g e

REPAYMENT:

In equated installments not exceeding 7 years; installments can be fixed in quarterly, half

yearly, annually depending upon the income generation of the party

INTEREST:

BR+6.25%

GUARANTEE:

3rd

party acceptable to the Bank

OTHER TERMS AND CONDITIONS:

Margin: On house plots approved by Housing Boards/Development authorities is 25%;

other residential sites or commercial properties margin is 50%.

Annual inspection of property

Obtaining of 3rd party mortgage

Takeover of loan from others not permitted

STATISTICS:

For Fiscal Year 2010-2011 Loans given under Synd Mortgage Scheme is Rs 1473 crores

which accounts for 1.51% of total loans give by Syndicate Bank.



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5.3 SYND NIVAS

PURPOSE:

For construction/acquisition of a house/flat or for acquiring a site and building a house

thereon

For acquiring a new house or existing house not more than 20 years old.

For making extensions/additions to existing house (max. Rs 5 Lakhs).

Takeover of existing Housing loan from other banks/ financial institutions in the case of

salaried class are permitted.

During the Takeover higher loan may also be considered depending upon the case

Repair/renovation max Rs 1.5 Lakhs in Rural/Semi Urban and Rs 2 Lakhs in Urban/Metro

branches.

ELIGIBILITY:

Both Resident and Nonresident Indians are eligible.

RESIDENT:

Applicant should be a major and not more than 55 years of age.

Applicant must be employed in reputed Govt. /Public Sector/Private sector organisations.

Self-employed/business class having gainful employment in a profession or business for a

period of minimum period of 5 years.

Individuals not owning a house/flat at the place of work / business / profession having

sufficient and regular income.

For salaried class, applicant should have completed 5 years of service and the remaining

period of service left shall not be less than 5 years.

Loan to third house is not permitted.

NONRESIDENT

Having Indian passport and having regular employment to justify repaying capacity



60 | P a g e

QUANTUM OF LOAN:

Lesser of the following is to be sanctioned as Housing Loan ensuring cutback:

1. The maximum eligibility based on the cost of the project is found out which is 75% of the

project cost.

2. The maximum eligibility based on the income is found out which is 72 months Gross

Salary.

3. The maximum amount of EMI available after other deductions and accordingly the

eligible loan amount with help of interest factor available in the EMI table is found out.

CUTBACK:

For Salaried class: 60% of the Gross Salary

For Non Salaried class: 60% (except Agriculturists)

SECURITY:

First mortgage of the site/house/flat to be constructed/acquired or as advised by the Legal

Adviser/Law Officer of the Bank.

Hypothecation of furniture & fixtures.

MARGIN: 25% of total project cost for construction/purchase of new flat or house up to 5 years old.

30% for acquiring house which is above 5 years old.

30% of the estimated cost of addition/extension/repairs/renovation.

PROCESSING CHARGES:

Rs.700/- per lakh with a minimum of Rs.1000/- at present. (Processing charges are subject to

change from time to time)

Documentation charges as applicable.



61 | P a g e

REPAYMENT:

FOR ACQUIRING A HOUSE

Equated monthly installments with maximum repayment period of 25 years

In case of salaried persons, repayment period shall not extend beyond superannuation.

In case of non salaried persons the repayment shall not extend beyond age of 70 years.

FOR REPAIRS/RENOVATION

Maximum repayment period is 5 to 7 years.

RATES OF INTEREST:

AMOUNT AND TENOR INTEREST RATE

Up to Rs 20.00 Lakhs

a) Up to 10 years BR+0.25% 10.25%

b) Above 10 to 20 years BR+0.50% 10.50%

Above Rs.20 Lakhs

a) Up to Rs. 20.00 Lakhs BR+1.25% 11.25%

b) Above Rs. 20.00 Lakhs BR+1.75% 11.75%

TABLE NO 5.2

STATISTICS

For fiscal year 2010-2011 loans under Housing Loan portfolio stood at `8,120.01 crore as

at March 31, 2011 with a clientele base of 1, 65,818. It represents 8.33% of total loans given by

Syndicate Bank.



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5.4 SYNDVIDYA

EDUCATIONAL LOAN SCHEME FOR STUDIES WITH IN INDIA AND ABROAD

PURPOSE:

STUDIES WITHIN INDIA:

To meet cost of tuition /special fees, books, instruments, hostel lodging and boarding

expenses etc...

FOR STUDIES ABROAD:

Travel expenses along with other study expenses are eligible.

ELIGIBILITY:

Students those who have secured admission in any Indian or Foreign universities based

on merit.

COURSES ELIGIBLE:

STUDIES WITHIN INDIA:

Graduation courses: BA, B.Com., B.Sc., etc.

Post graduation courses: Masters Degree & Ph.D.

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,

Management, Computer etc.

Course like ICWA, CA, CFA etc.

Courses conducted by IIM, IIT, IISC, XLRI, NIFT etc.

Courses offered in India by reputed foreign universities.



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Other courses leading to Diploma/Degree etc., conducted by Colleges/Universities

approved by UGC/Govt./AICTE/AIBMS/ICMR etc.

STUDIES ABROAD:

Graduation: For job oriented professional / technical courses offered by reputed

universities.

Post Graduation: MCA, MBA, MS etc.

Courses conducted by CIMA-London, CPA in USA etc.

STUDENT ELIGIBILITY:

Any major student representing himself or a minor student represented by parent or

guardian, of Indian nationality.

Secured admission to professional / technical courses in India or abroad through entrance

test/ Merit based selection process.

QUANTUM OF FINANCE:

STUDIES IN INDIA - Maximum Rs.10.00 lakh

STUDIES ABROAD - Maximum Rs.20.00 lakh

MARGIN:

For studies within India or Abroad

Up to Rs.4 lakh: Nil

Above Rs 4 lakh: 5%



64 | P a g e

SECURITY:

Up to Rs.4 lakh: No security.

Rs.4 lakh up to Rs.7.50 lakh: Collateral in form of guarantee acceptable to the Bank

Above Rs.7.50 lakh: 100% of the loan amount with suitable margin by way

of UREM /NSC etc…

RATE OF INTEREST:

Up to Rs 4.00 lakhs: BR+2.25%

Above Rs 4.00 lakhs: BR+2.75%

MAXIMUM REPAYMENT PERIOD:

In 60 to 84 installments ½ years after completion of education or 6 months after obtaining

the securing the employment whichever is earlier.

GUARANTORS:

Up to 4 lakhs: Parent /Guardian to join as surety

Above Rs 4 lakhs: Parents PLUS one more guarantor outside the family

STATISTICS:

For Fiscal Year 2010-2011 education loans given under Synd Vidya Scheme is Rs

1902.85 crores which accounts for 1.95% of total loans.

SPECIAL CONCESSIONS UNDER THE SCHEME:

All Students belonging to SC/ST category are eligible for concession of 0.50 per cent on

the applicable rates of interest and all girl students are eligible for concession of 0.50 per cent

on the applicable rates of interest.



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5.5 SYNDVAHAN

PURPOSE:

Purchase of New/second hand Four-wheeler, such as Car, Van, Jeep, etc.

Purchase of New two wheeler such as, Motorbikes, Scooter, etc.

NATURE OF FACILITY:

Secured Loan (OSL)

ELIGIBILITY:

FOR FOUR WHEELERS: Individuals having minimum annual income of Rs.2.00 lakh.

For determining eligibility, quantum of loan, the income of spouse, major children including

unmarried daughters, supporting the borrower financially, can be considered. The person/s

whose income is/are included for the above purpose shall join the transaction as additional

surety/ies. Agriculturists are eligible.

FOR TWO WHEELERS: Individuals having minimum annual income of Rs.0.50 lakh.

QUANTUM:

FOR FOUR WHEELER:

a) 95% of on-road price (inclusive of Insurance, Road Tax and Registration charges) of the

vehicle for new car and accessories (the cost of accessories is limited to a maximum of

Rs.10000/-) or three times the gross annual income, whichever is less.b) 70% of value of the Car (as valued by approved value) for 2nd hand car of not more than

5 years old or 3 times gross annual income or Rs.3.00 lakhs, whichever is less.



66 | P a g e

FOR NEW TWO WHEELER:

a) 95% of on-road price (inclusive of Insurance, Road Tax and Registration charges) of the

new 2 wheeler and accessories (max. Rs.500/-) or 6 months gross salary, whichever is

less, with no Maximum ceiling.

b) Second hand two wheelers are not eligible for Bank finance.

CUTBACK:

Normally not to exceed 50% of gross salary

Not to exceed 60% in case of voluntary contributions like LIC etc…

Not to exceed 70% in case spouse has separate income from regular employment

Not to exceed 50% for pensioners

SECURITY:

Hypothecation of the vehicle to be purchased

SURETY:

Good 3rd

party acceptable to the bank

RATE OF INTEREST:

2 WHEELERS:

BR+3.75%

1% concession in applicable rate is available to employees of

govt.departments/PSU/Corporations and blue chip companies where there is tie up arrangement

or corporate sponsor the application and give irrevocable of undertaking.

4 WHEELERS:

BR+3.25%



67 | P a g e

1% concession in applicable rate is available to employees of

govt.departments/PSU/Corporations and blue chip companies where there is tie up arrangement

or corporate sponsor the application and give irrevocable of undertaking.

REPAYMENT:

FOR NEW 4 WHEELERS:

84 Equated Monthly Installments

FOR OLD 4 WHEELERS:


FOR 2 WHEELERS:


TIE- UP WITH CAR MANUFACTURERS:

M/s Hyundai Motors India Ltd, M/s Maruti Suzuki, M/s International Car Manufacturers

Ltd, M/s Mahindra and Mahindra

STATISTICS:

For the Fiscal Year 2010-2011this portfolio registered a growth of 21.72 % during the

year ended 31.03.2011 with an outstanding of `983.46 crores at the year end.



68 | P a g e

5.6 SYND SENIOR

An exclusive personal loan scheme for pensioners

PURPOSE:

Any bonafide personal / business credit requirement

ELIGIBILITY:

Pensioners whose pensions are being routed through accounts held with our Bank

QUANTUM:

Details of the quantum of loan that can be sanctioned based upon age profile of the borrower

are as follows:

Age Range Basis of Arriving at Quantum

Maximum permissible

loan Amount (` in

Lakh)

Up to 65 years 18 times the gross monthly pension 3.00

65 – 70 years 18 times the gross monthly pension 1.50

Over 70 years 5 months gross pension 0.50

TABLE NO 5.3



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SECURITY:

Unsecured

RATE OF INTEREST:Rate of Interest is Base Rate + 3.75%

NATURE OF FACILITY:

Demand Loan

SURETY:

No surety for loans up to 6 months gross monthly pension or Rs.50000/- whichever is lower

In all other cases the surety of a family member or that of a third party and surety should

have adequate means / income.

REPAYMENT:

In not more than 72 Equated Monthly installments

CUT BACK:

50% of income from verifiable sources

PROCESSING FEES:

For loans up to Rs 50,000/- -- No processing fees

For loans above Rs 50,000/- -- A flat processing charge of Rs 200/- per loan.

U.S.P’s:

Pensioners aged less than 65 years are also eligible

EMI: 72

No processing fee up to Rs 50,000/-



70 | P a g e

5.7 SYND SWARNA

ELIGIBILITY:

Pledge of Jewels properly appraised, to customers who are properly introduced to the Bank.

CLASSIFICATION:

Jewel loan: Agriculturist, SSI and Small Business, Retail Traders etc… are classified as

Priority Sector Advances.

Others – Non Priority Sector

NATURE OF FACILITY:Term Loan / Secured Overdraft.

INSURANCE:

Required only if the borrower insists for, but at his cost

QUANTUM OF LOAN:

SCHEME 1:

22 ct. – Rs 1600 per gram

24 ct. /hallmarked Gold- Rs 1650 per gram

SCHEME 2:



SCHEME 3:





71 | P a g e

RATE OF INTEREST:

SCHEME 1:

Base Rate+4.50% for agricultural purpose

SCHEME 2:

Base Rate+3.50% for agricultural purpose

SCHEME 3:

Base Rate+2.50%

REPAYMENT PERIOD:

SCHEME 1:

Up to 6 months

SCHEME 2:

More than 6 months up to 12 months

SCHEME 3:

More than 12 months up to 24 months

PROCESSING CHARGES:

Rs 1.50 per thousand with a minimum of Rs 150/- for all the schemes

STATISTICS:

For Fiscal Year 2010-2011 loans given under Synd Swarna Scheme is Rs 1934.55 crores

which accounts for 1.98% of total loans.



72 | P a g e

5.8 STATISTICS FOR LOANS

SECTOR WISE REPRESENTATION OF LOANS FOR YEAR 2010-2011DESCRIPTION AMOUNT(Rs in crore ) PERCENTAGE OF TOTAL RETAIL LOANS

HOUSING LOANS 8120.01 35.82

PERSONAL LOANS 5326.08 23.50

MORTGAGE LOANS 1473.18 6.49

EDUCATIONAL LOANS 1902.85 8.39

SYND SWARNA 1934.55 8.53

OTHERS 3906.38 17.23

TOTAL 22663.05 100.00

TABLE NO 5.4

PICTORIAL REPRESENTATION OF LOANS FOR YEAR 2010-2011

FIG NO 5.1

SECTOR WISE REPRESENTATION OF LOANS FOR YEAR 2009-2010

DESCRIPTION AMOUNT(Rs in crore ) PERCENTAGE OF TOTAL RETAIL LOANS

HOUSING LOANS 7304.41 36.49

PERSONAL LOANS 5055.40 25.26

MORTGAGE LOANS 2478.73 12.38

EDUCATIONAL LOANS 1459 7.29

SYND SWARNA 1410 7.04

OTHERS 2319.29 11.58

TOTAL 17795 100.00

8120.01

5326.08

1473.18

1902.85

1934.55

3906.38

LOAN AMOUNT(Rs in crore)

HOUSING LOAN

PERSONAL LOAN

MORTGAGE LOAN

EDUCATION LOAN

SYND SWARNA

OTHERS



73 | P a g e

TABLE NO 5.5

SECTOR WISE REPRESENTATION OF LOANS FOR YEAR 2008-2009

DESCRIPTION AMOUNT(Rs in crore ) PERCENTAGE OF TOTAL RETAIL LOANS

HOUSING LOANS 6614 37.16

PERSONAL LOANS 4733 26.60

MORTGAGE LOANS 1893 10.64

EDUCATIONAL LOANS 1139 6.40

OTHERS 3416 19.19

TOTAL 17795 100.00

TABLE NO 5.6

COMPARISION OF LOANS FOR YEARS ENDED ON MARCH 31 2009, 2010,2011

FIG NO 5.2

0

2000

4000

60008000

10000

YEAR 2009YEAR 2010

YEAR 2011

COMPARISION OF LOANS FROM 2009 TO

2011

HOUSING LOANS(Rs in

crore)PERSONAL LOANS(Rs in

crore)

MORTGAGE LOANS(Rs in

crore)

EDUCATIONAL LOANS(Rs in

crore)



74 | P a g e

CHAPTER 6

E BANKING

Syndicate Bank has always recognized that Information Technology is an essential part

of Banking. The Bank has been in the forefront amongst Public Sector Banks in deploying the

latest available technology, in a way that technology acts as an enabler in the development of

business and ensures that customers are benefited and delighted.

6.1 CORE BANKING SOLUTION

Core Banking Solution is also known as Syndicat-e-banking. The Bank is the first

among the Public Sector Banks to implement Core Banking Solution (CBS), way back in

2001. During the financial year 2007-2008, CBS was further consolidated and the overall

CBS network of the Bank increased to 1829 branches/offices spread across 1033 centres

and accounted for about 96% of the Bank's business. As on 17.03.2009, all the

branches of Syndicate bank are in the CBS fold.

The CBS Project has enabled the Bank to deliver banking products and services

over multiple delivery channels like networked ATMs, Telebanking, Internet Banking

and Mobile Banking, so as to provide Anywhere Anytime Anyhow (AAA) banking

service to customers. With the introduction of CBS, the Bank has transformed the Branch

customers to Bank customers thereby achieving significant shift in customer preference

from brick-and-mortar channel to 24x7 delivery channels.



75 | P a g e

6.2 DELIVERY CHANNELS

Delivery channels are various technology based means through which the customers can

transact their business with the Bank at their convenience anywhere and at anytime of the day or

night. Thus, the customers will have choice of transacting business through ATM, Internet

Banking, Telebanking, Mobile banking or through plastic cards such as Credit Card, Debit Card

Smart Card etc., choice of his convenient time, ATMs, Telebanking, Internet Banking and

mobile banking are round the clock available - and choice of his place, these can be accessed at

multiple locations, including overseas locations.

In tune with various needs of the customers, different means or channels have been

evolved

Different delivery channels are

1) Automated Teller Machines

2) Telebanking services

3) Global Debit card

4) Global Credit card

5) Internet Banking



76 | P a g e

6.2.1 AUTOMATED TELLER MACHINES

ATMs offer the convenience of withdrawing /depositing cash and performing other

banking transactions without having to visit the branch during pre-fixed business hours.

These machines work round the clock, are safe to transact in a isolated and secure

environment.

With the inter-connected ATMs, the convenience becomes much more acceptable as

the customer can transact from any ATM most convenient to him/her. Thus ATM network

gives the card holder freedom to choose his day, time and place to transact in his account.

E-banking customers of Syndicate Bank can access 1220 ATMs. The Bank is a member of

VISA International, which extends the usage reach of our ATM/Debit Card holders to over

28700 ATMs in the country and over 1.2 million ATMs across the globe. Cardholders of

Syndicate Bank can also transact at Member Establishments (MEs) numbering over 3.5

lakhs in the country and over 2.84 Crores across the globe.

The Bank is also a founder member of the "CashTree" consortium with 5 other banks

since 2003 formed with a view to extend the reach of the cardholders and to enhance

customer convenience. Presently, 13 Banks are members of the network thereby increasing

the total number of ATMs under the "CashTree" network to over 4300.

The services offered through these ATMs are :

Cash Withdrawal and Deposits

Balance Enquiry

Mini statement (last 10 transactions)

Stop Payment of cheque

Funds transfer

Cheque related services including cheque book request

PIN Change



77 | P a g e

6.2.2 INTERNET BANKING

Internet Banking, which is emerging as an all-pervasive channel, is gaining acceptance

amongst clientele of the bank. The number of users has increased considerably.

Internet Banking of Syndicate Bank is very user friendly facility. It can be accessed

through the website www.syndicatebank.in .The convenience and ease of operations through

Internet Banking makes it a Unique Value Proposition for the customers. At present there are

5.66 lakh users of Internet banking for Syndicate Bank.

Major services offered to Retail customers by Internet Banking are

Account Related Activities

Standing Instructions

Term Deposit Related Functions

Loans Related Functions

Funds Transfer (to self and third party accounts within the Bank)

Cheque Related

Demand Draft, Banker's Cheque Request

Electronic Bill Presentment And Payments

Online Railway Ticket Booking

SyndBillPay - Utility Bill Payments



78 | P a g e

6.2.3 TELEBANKING SERVICES

Undertaking a host of banking related services including financial transactions from theconvenience of Customers’ chosen place anywhere across the GLOBE and any time of date and

night has now been made possible by introducing on-line Telebanking services. By dialing the

given Telebanking number through a landline or a mobile from anywhere, the customer can

access his account and by following the user friendly menu, entire banking can be done through

Interactive Voice Response (IVR) system

The system is has following facilities offered;

Automatic balance voice out for the default account.

Balance inquiry and transaction inquiry in all

Inquiry of all term deposit account

Statement of account by Fax, e-mail or ordinary mail.

Cheque book request

Stop payment which is on-line and instantaneous

Transfer of funds with CBS which is automatic and instantaneous

Utility Bill Payments

Voice out of last five transactions.

Various inquiries such as term deposit rates, forex rates etc.



79 | P a g e

6.3 GLOBAL CARDS

6.3.1 SYNDICATE BANK GLOBAL DEBIT CARD

Syndicate Bank Global Credit Card (SBGCC) is a payment product of great value and

convenience offered to the customers. Its unmatched features and very attractive offer makes it a

unique product in its class.

1. FEATURES OF THE CARD:

Acceptance at following locations-

Purpose Locations

Cash

Withdrawa

l

All ATMs of Syndicate Bank (over 1200) and ATMs displaying

VISA logo (over 50,000 in India & over 10 Lakh across the Globe)

Purchases All Merchant Establishments accepting VISA Cards (over 5 Lakhs in

India & over 26 million across the Globe)

Others Internet, Mail Orders & Telemarketing

TABLE NO 6.1

Rewards points of one point for every Rs. 200 spend with the Card.

Syndicate Bank Global Credit Card is issued in association with VISA.



80 | P a g e

2. ELIGIBILITY CRITERIA (RESIDENT INDIANS):

The applicant should -

Be the resident of / working within operational area of the Card Issuing Branch.

Not be a minor or an illiterate person.

Preferably be a customer of our Bank having satisfactory operations in the account with

branch for at least 3 months.

Have Permanent Account Number (PAN) issued by Income Tax Department.

Be of the age group and have independent income as shown below-

Category of applicant Age eligibility as on the

date of application

Minimum Annual

Income

(Amount in rupees)

Gold Classic

Salaried Persons Over 21 & under 60 years 1,50,000 60,000

Self-Employed persons,

Professionals & Businesssegment

Over 21 & under 65 years 2,00,000 1,00,000

Senior Citizens &

Pensioners

Maximum 75 years Not eligible 60,000

TABLE NO 6.2

3. BILLING SCHEDULE AND PAYMENT MODE/ PROCEDURE:

The Billing Statements showing the details of transactions through the Card, Charges levied& payments received are generated as on 20

thof every month and sent to Cardholders

presently by ordinary post.



81 | P a g e

6.3.2 SYNDICATE BANK GLOBAL DEBIT CARD

Syndicate Bank Global Debit-cum-ATM Card brings customers the convenience of

accessing their money anytime & from anywhere globally. They can transact in any currency,

but pay in Indian Rupees. It is a convenient e-wallet valid in India & abroad with VISA Power.

The Card is offered for all eligible accounts with any of Syndicate-e-banking (CBS) branches of

the Bank.

FEATURES OF THE CARD:

1. Acceptance at following locations-

LOCATION LOGO PURPOSE

All ATMs of SyndicateBank

For Cash Withdrawal, Balance

Enquiry, Mini Statement & Change

of PIN through over 1211 ATMs

Other Banks’ ATMs

displaying

VISA Logo

For Cash Withdrawal & Balance

Enquiry through over 16,000 ATMs

in India and over 10 lakh ATMs

globally

Merchant

Establishments

Displaying VISA Logo

For purchases through over 1.88

lakh MEs in India and over 24million Mes globally

All ‘CashTree’ ATMs

For Cash Withdrawal & Balance

Enquiry through over 3,000 ATMs

National Financial

Switch (NFS) NetworkFor Cash Withdrawal & Balance

Enquiry through over 46,875

ATMs.

TABLE NO 6.3



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2. Syndicate Bank Global Debit Card is issued in association with VISA.

3. USAGE LIMITS:

SlNo Description

Transaction limitin Indian Rs orequivalent ForeignCurrency at ourATM in India orVISA ATM outsideIndia

Transaction limit inIndian Rs orequivalent ForeignCurrency at otherBank’s ATM in

India (VISA, CashTree/ NFS)

01 Minimum value of any transaction atATM

Rs.100/- Rs.100/-

02 Maximum value per transaction at

ATM

Rs.20,000/- Rs.10,000/-

03 Maximum value of on-line transaction

per day at ATMRs.25,000/- Rs.25,000/-

04 Number of transaction permissible per

month

No Restriction No Restriction

5 Transactions Free

for SB customers and

all transactions

chargeable for

CA/OD customers

05 Applicability of per transaction and

per day monetary limit

Both for domestic

and International

transactions

Both for domestic and

International

transactions

TABLE NO 6.4



83 | P a g e

4. ELIGIBLE CUSTOMERS:

All individuals (including NRIs, Foreign Nationals but excluding minors & illiterate

persons) maintaining individual or joint (operated by any one) Savings Bank, Current or

Overdraft A/cs.

All Proprietorship Firms maintaining Current or Overdraft A/cs.

Up to three accounts of a person with same Customer ID with the Bank can be linked to a

Debit Card.

5. LOST CARD LIABILITY:

In the event of loss/theft of Debit Card in the hands of Cardholder, the liability of the

Cardholder would be limited to a maximum of Rs.1, 000/- from the time of notification of

such loss/theft of the Card to the Bank.



84 | P a g e

CHAPTER 7

PRIMARY RESEARCH

7.1 QUESTIONNAIRE

A sample of 33 people is surveyed using primary questionnaire and the inferences that are drawn

are given below. This research is done as to supplement secondary data.

1. For the question which bank do they have accounts , SBI topped the list with 60% of

people having replied that they have account in SBI which is followed by Andhra Bank

with 21% people having accounts in it.

FIG NO 7.1

3

1212

60

18

3

126

93

21

3 12

36

9

3 3

ACCOUNTS (in terms of %)FEDERAL BANK

HDFC BANK

BANK OF BARODA

SBIANDHRA BANK

HSBC BANK

SBH

SYNDICATE BANK

CANARA BANK

VIJAYA BANK

ICICI BANK

INDIAN BANK

BANK OF INDIA

KARUR VYSYA BANKDENA BANK

UNION BANK OF INDIA



85 | P a g e

2. For the question of Recall of public sector banks, 58% people recalled SBI followed by

Andhra Bank which was recalled by 33% people. Syndicate Bank was recalled by 24%

people.

FIG NO 7.2

3. For the question whether people heard of Syndicate Bank or not, 94% people replied

that they have heard of Syndicate Bank.

FIG NO 7.3

24

33

5815

21

15

6

39

63

66

15

RECALL OF PUBLIC SECTOR BANKS(in terms of %)

SYNDICATE BANKANDHRA BANKSBICANARA BANKBANK OF BARODAINDIAN BANKPUNJAB NATIONAL BANKVIJAYA BANKINDIAN OVERSEAS BANKUCO BANKALLAHABAD BANKCORPORATION BANK

94

6

WHETHER THE RESPONDENT HAS HEARD ABOUT

SYNDICATE BANK OR NOT

YES NO



86 | P a g e

4. For the question what is the most important feature that attracts them in products and

services provided by bank, Availability of branch nearby attracts them the most with

40% of people favouring it.

FIG NO 7.4

5. For the question whether people are using Internet banking and visiting branch 58%

people replied that they do not use Internet Banking.42% people use internet banking out

of which only 12% people visit branch even after using internet banking.

FIG NO 7.5

30

27

40

3

IMPORTANT FEATURE THAT ATTRACTS

CUSTOMER(in terms of %)

PROMPTNESS OF SERVICE

BEHAVIOR OF BANK OFFICIALS

AVAILABILITY OF BRANCH

NEARBY

TECH SAVVY

12

30

58

CUSTOMERS USE INTERNET BANKING AND VISIT

BRANCH

YES AND VISIT BRANCH

YES AND DO NOT VISIT BRANCH

DO NOT USE INTERNET

BANKING AND VISIT BRANCH



87 | P a g e

6. For the question about whether the people are aware of Syndicate Bank’s Global

debit card and Global credit card only 6% people replied that they are aware of them.

FIG NO 7.6

7. For the question what do the customers look in for when they approach a bank for a

loan, 61% people responded that they look in for Timely Processing when they approach

a bank for a loan

FIG NO 7.7

6

94

RESPONDENT IS AWARE OF SYNDICATE

BANK'S GLOBAL DEBIT AND CREDIT CARDS

YES

NO

6115

9

15

FEATURE THAT CUSTOMERS LOOK INTO WHILE

THEY APPROACH FOR LOAN

TIMELY PROCESSING

BEHAVIOR OF BANK OFFICIALS

QUANTUM OF LOAN

REPUTATION OF BANK



88 | P a g e

8. For the question whether people would prefer National Savings Certificate or Fixed

Deposit in a Bank, 79% people prefer Fixed Deposit in Bank while only 21% people

prefer National Savings Certificate.

FIG NO 7.8

7.2 SUGGESTIONS

21

79

CUSTOMERS PREFER NATIONAL SAVINGS

CERTIFICATE OR FIXED DEPOSIT IN BANK(in terms

of %)

NATIONAL SAVINGS

CERTIFICATE

FIXED DEPOSIT IN A BANK



89 | P a g e

Market share of Syndicate Bank being low Vis a Vis other banks, Syndicate Bank needs

to make aggressive strategies to make an effective dent in market so that more number of

people open account with Syndicate Bank.

The recall level of Syndicate Bank is comparatively low and advertising and other image

building exercises need to be implemented to improve recall level

Since most of the respondents have indicated, availability of nearby branch as one of the

most important features which attracts them, Syndicate Bank is in good position as it has

a network of 2494 branches and 1220 ATMs spread across length and breadth of country

Since there is a mix of customers using Internet banking or visiting branch, the bank

needs to keep a balance between the number of branches and at the same time making

available an excellent Internet banking system

Since only 6% of people are aware of Global Debit Card and Global Credit Card

provided by Syndicate Bank, an effective advertising and publicity needs to be carriedout to increase the awareness of the cards.

As most of respondents have indicated that Timely processing of loan as one of the most

important feature, Syndicate Bank needs to emphasise on speedy/prompt disposal of loan

proposal.

CHAPTER 8



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DATA FINDINGS AND ITS ANALYSIS

8.1 COMPARISION OF DEPOSITS OF SYNDICATE BANK VIS-À-VIS

ICICI BANK AND ANDHRA BANK FOR FISCAL YEAR 2010-2011

DEPOSIT SYNDICATE

BANK(Rs in crore)

ICICI BANK(Rs in

crore)

ANDHRA BANK(Rs

in crore)

CASA 41945 101647 26779

TERM 135306 123955 65337

TABLE NO 8.1

PICTORIAL REPRESENTATION OF ABOVE DATA

FIG NO 8.1

ANALYSIS:

0

20000

40000

60000

80000

100000

120000

140000

SYNDICATE BANK ICICI BANK ANDHRA BANK

41945

101647

26779

135306123955

65337CASA

TERM DEPOSIT



91 | P a g e

With reference to CASA deposits for the year ended 31st

March 2011, ICICI bank tops

the list with Rs 101647 Crore followed by Syndicate Bank with Rs 41945 Crore its and Andhra

Bank is in third position with Rs 28342.35 Crore.

On basis of Term deposits for the year ended 31st

March 2011, Syndicate Bank is in first

place with Rs 135306 Crore and ICICI Bank is in second place with Rs 123955 Crore. Andhra

Bank is in Third place with Rs 73447.55 Crore.

8.2 COMPARISION OF LOANS OF SYNDICATE BANK VIS-À-

VIS ICICI BANK AND ANDHRA BANK FOR FISCAL YEAR

2010-2011

SYNDICATE

BANK(in Rs Crores)

ICICI BANK(in Rs

Crores)

ANDHRA BANK(in

Rs Crores)

HOUSING LOANS 8120.01 54126 4479

PERSONAL LOANS 5326.08 4031 1349.69

EDUCATION

LOANS

1902.85 0 1621.66

LOANS AGAINST

SECURITIES,GOLD

AND PROPERTIES

3407.73 1347 1544

AUTOMOBILE

LOANS

983.46 8581 609

OTHER LOANS 2922.92 13675 875.65

TOTAL 22663.92 81760 10479

TABLE NO 8.2




92 | P a g e

FIG NO 8.2

ANALYSIS:

In terms of Housing loans for the year ended 31st March 2011, ICICI Bank tops the list with

Rs 54126 Crore followed by Syndicate Bank with Rs 8120.01 Crore and Andhra Bank is third

with Rs 4479 Crore.

In terms of Personal loans for the year ended 31st

March 2011, Syndicate Bank tops the list

with Rs 5326.08 Crore and ICICI Bank is second with Rs 4031 Crore. Andhra Bank occupies

third position with Rs 1349.69 Crore.

On basis of Education loans for the year ended 31st

March 2011, Syndicate Bank tops the list

with Rs 1902.85 Crore closely followed by Andhra Bank with 1621.66 Crore. ICICI Bank does

not provide Educational Loan.

In terms of Loans given against Gold, Property and Securities the year ended 31st March

2011, Syndicate Bank is the top with Rs 3407.73 Crore and Andhra bank is in second place with

Rs 1544 Crore. ICICI Bank is in Third place with Rs 1347 Crore.

Based on Automobile loans given for the year ended 31st

March 2011, ICICI Bank is at pole

position with Rs 8581 Crore followed by Syndicate Bank with Rs 983.46 Crore. Andhra Bank is

in Third place with Rs 609 Crore.

0

10000

20000

30000

40000

50000

60000

SYNDICATE

BANK

ICICI BANK ANDHRA BANK

L O A N A M O

U N T I N C R O R E

BANKS

HOUSING LOANS(Rs in crores)

PERSONAL LOANS(Rs in crores)

EDUCATION LOANS(Rs in crores)

LOANS AGAINST GOLD,PROPERTY

AND SECURITIES(Rs in crores)

AUTOMOBILE LOANS(Rs in crores)

OTHER LOANS(Rs in crores)



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8.3 COMPARISION OF ATMs OF SYNDICATE BANK VIS A VIS ICICI

BANK AND ANDHRA BANK AS ON 31ST MARCH 2011

BANK NUMBER OF ATM’S(as on 31st March

2011)

SYNDICATE BANK 1220

ICICI BANK 6055

ANDHRA BANK 981

TABLE NO 8.3


FIG NO 8.3

ANALYSIS:In terms of number of ATM’s across the country, being the largest private sector bank in the

country ICICI bank tops the list with 6055 ATMs followed by Syndicate Bank with 1220 ATMs.

Andhra Bank occupies Third place with 981 ATMs.

0

1000

20003000

4000

5000

6000

7000

SYDICATE

BANK

ICICI BANK ANDHRA BANK

NUMBER OF ATM'S(as on 31st March 2011)

NUMBER OF ATM'S(as on 31st

March 2011)



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8.4 COMPARISION OF TOTAL BUSINESS OF SYNDICATE BANK VIS A VIS OTHER BANKS

BANKS TOTAL BUSINESS IN CRORES(RS)

ANDHRA BANK 164310

SYNDICATE BANK 243946ICICI BANK 461958

SBI 1738049

PUNJAB NATIONAL BANK 555005CANARA BANK 506440

BANK OF INDIA 515040

BANK OF BARODA 534116

HDFC BANK 368569

TABLE 8.4

FIG 8.4

INFERENCE:

In terms of total business SBI stands in first place with Rs 17, 38,049 crores followed by Punjab

National Bank with Rs 5,55,005 Crores. Syndicate Bank is in 8th place with Rs 2,43,946 Crores

0200000400000600000800000

100000012000001400000160000018000002000000

TOTAL BUSINESS IN RS CRORES

ANDHRA BANK

SYNDICATE BANK

ICICI BANK

STATE BANK OF INDIA

PUNJAB NATIONAL BANK

CANARA BANK

BANK OF INDIA

BANK OF BARODA

HDFC BANK



95 | P a g e

8.5 COMPARISION OF TOTAL DEPOSITS OF SYNDICATE BANK VIS A VIS OTHER BANKS

BANKS TOTAL DEPOSITS IN CRORES(RS)

ANDHRA BANK 92516

SYNDICATE BANK 135596ICICI BANK 225602

SBI 804116

PUNJAB NATIONAL BANK 312899CANARA BANK 293973

BANK OF INDIA 298885

BANK OF BARODA 305439

HDFC BANK 208586

OTHER BANKS 2406240TOTAL DEPOSITS 5083852

TABLE 8.5

FIG 8.5.1

INFERENCE:

In terms of total business SBI stands in first place with Rs 804116 crores followed by Punjab

National Bank with Rs 312889 Crores. Syndicate Bank is in 8 th place with Rs 1,35,596 Crores

0100000200000300000400000500000

600000700000800000900000

TOTAL DEPOSITS IN CRORES

ANDHRA BANK

SYNDICATE BANK

ICICI BANK

STATE BANK OF INDIA


CANARA BANK

BANK OF INDIA

BANK OF BARODA



96 | P a g e

FIG 8.5.2

INFERENCE:

In terms of total deposits of all the banks SBI and its associates has highest share with 15.8% of

total deposits followed by Punjab National Bank with 6.15% share. Syndicate Bank is in 8th

place with 2.66% share of total deposits.

1.8 2.66 4.4

15.8

6.15

5.78

5.87

64.1

47.33

DEPOSITS OF BANKS IN TERMS OF % OF TOTAL

DEPOSITSANDHRA BANK(1.8 %)

SYNDICATE BANK(2.66 %)

ICICI BANK(4.4 %)

SBI AND ITS ASSOCIATES(15.8 %)

PUNJAB NATIONAL BANK(6.15 %)

CANARA BANK(5.78 %)

BANK OF INDIA(5.87 %)

BANK OF BARODA(6 %)

HDFC BANK(4.1 %)

OTHER BANKS(47.33 %)



97 | P a g e

8.6 COMPARISION OF ADVANCES OF SYNDICATE BANK VIS A VISOTHER BANKS

BANKS ADVANCES IN CRORES(RS)

ANDHRA BANK 49129SYNDICATE BANK 108350ICICI BANK 216366

SBI 933933PUNJAB NATIONAL BANK 242107

CANARA BANK 212467

BANK OF INDIA 165147BANK OF BARODA 228676

HDFC BANK 159983

OTHER BANKS 1494287

TOTAL ADVANCES 3810445

TABLE 8.6

FIG 8.6.1

INFERENCE:

In terms of total advances SBI stands in first place with Rs 9,33,933 crores followed by Punjab

National Bank with Rs 2,42,107 Crores. Syndicate Bank is in 8th place with Rs 1,08,350 Crores

0100000200000300000400000

500000600000700000800000900000

1000000

ADVANCES IN CRORES

ANDHRA BANK

SYNDICATE BANK

ICICI BANK

STATE BANK OF INDIA


CANARA BANK

BANK OF INDIA

BANK OF BARODA

HDFC BANK



98 | P a g e

FIG 8.6.2

INFERENCE

In terms of advances of all the banks SBI and its associates has highest share with 24% of total

advances followed by Punjab National Bank with 6.35% share. Syndicate Bank is in 8th

place

with 2.84% share of total advances.

1.2 2.84 5.67

24.5

6.35

5.574.336

4.19

39.2

ADVANCES OF BANKS IN TERMS OF % OF TOTAL

ADVANCESANDHRA BANK(1.2 %)


ICICI BANK(5.67 %)


PUNJAB NATIONAL BANK(6.35 %)

CANARA BANK(5.57 %)


BANK OF BARODA(6 %)

HDFC BANK(4.19 %)

OTHER BANKS(39.2 %)



99 | P a g e

8.6 COMPARISION OF RETAIL ADVANCES OF SYNDICATE BANK VIS A VIS OTHER BANKS

BANKS RETAIL ADVANCES IN CRORES(RS)

ANDHRA BANK 8843SYNDICATE BANK 22663ICICI BANK 45436.8

SBI 214804.5PUNJAB NATIONAL BANK 46231

CANARA BANK 40368

BANK OF INDIA 31870BANK OF BARODA 36538

HDFC BANK 32911.6

OTHER BANKS 286178.9

TOTAL ADVANCES 765387.25

TABLE 8.7

FIG 8.7.1

INFERENCE:

In terms of Retail advances SBI and its Associates stands in first place with Rs 2,14,804.5 crores

followed by Punjab National Bank with Rs 46,231 Crores. Syndicate Bank is in 8th

place with Rs

22,663.05 Crores

0

50000

100000

150000

200000

250000

TOTAL RETAIL ADVANCES IN CRORES

ANDHRA BANK

SYNDICATE BANK

ICICI BANK

SBI AND ITS ASSOCIATES


CANARA BANK

BANK OF INDIA

BANK OF BARODA

HDFC BANK



100 | P a g e

FIG 8.7.2

INFERENCE

In terms of Retail advances of all the banks SBI and its associates has highest share with 28.06%

of total advances followed by Punjab National Bank with 6% share. Syndicate Bank is in 8th

place with 2.96% share of Retail Advances.

1.15 2.96 5.93

28.06

65.274.16

4.78

4.3

37.39

RETAIL ADVANCES OF BANKS IN TERMS OF % OF

TOTAL RETAIL ADVANCES

ANDHRA BANK(1.15 %)


ICICI BANK(5.93 %)


PUNJAB NATIONAL BANK(6 %)

CANARA BANK(5.27 %)


BANK OF BARODA(4.78 %)

HDFC BANK(4.3 %)

OTHER BANKS(37.39 %)



101 | P a g e

CHAPTER 9

CONCLUSION

The Study of retail products both deposits and advances of Syndicate Bank has given insight

into the products and services offered by the bank into the individuals/retail clients. It has given

opportunity to study the various factors pertaining to eligibility, quantum of loan and repayment

schedule for individual customers.

The study has thrown light on behavioural aspects of customers and has provided certain

inputs of bringing about improvements in the marketing strategies in the marketing of products

by devising suitable strategies.

The comparative study between Syndicate Bank and other banks has given the inputs

regarding where does Syndicate Bank stand Vis a Vis other banks namely ICICI Bank and

Andhra Bank.

Though there is lot more scope for research in these retail products but since time is

constraint research could not be carried to full extent.



102 | P a g e

ANNEXURE -1 QUESTIONNAIRE

NAME: AGE:

1) In which bank do you have accounts?

………………………………………

……………………………………….

2) Can you name any 3 public sector banks?

………………………………………….

3) Have you heard about Syndicate Bank?

……………………………………………………………………………

4) What is the most important which attracts you in the products and services provided by a

bank?

a) Promptness of service c) Behavior of bank officials

b) Availability of branch nearby d) Tech savvy

5) Are you using Internet Banking and if yes are you visiting branch or not?

………………………………………………………………………………………………

6) Are you aware of Syndicate Bank’s Global Debit and Credit Card and if yes how

frequently you use it?

………………………………………………………………………………………………

7) If you approach a bank for availing a loan facility what do you look in for

a) Timely processing c) Quantum of loan

b) Reputation of bank d) Behavior of Bank officials

8) Out of National Savings Certificate and fixed deposit in a bank which one do you

prefer?

………………………………………………………………………………



103 | P a g e

BIBLIOGRAPHY

WEBSITES:

www.syndicatebank.in


http://en.wikipedia.org/wiki/Syndicate_bank

http://finance.indiamart.com/investment_in_india/banking_in_india.html

http://en.wikipedia.org/wiki/Banking_in_India

www.andhrabank.in

www.icicibank.com

ANNUAL REPORTS OF ANDHRA BANK, SYNDICATE BANK, ICICI BANK, HDFC

BANK, PUNJAB NATIONAL BANK, SBI, BANK OF INDIA, BANK OF BARODA,

CANARA BANK

BOOKS:

KENT ERIKSSON 2008 The Future of Retail Banking Emerald Group Publishing

Limited

KEITH POND 2007 Retail Banking London Financial World Publishing Limited

http://www.syndicatebank.in/











http://www.andhrabank.in/


http://www.icicibank.com/











104 | P a g e

GLOSSARY

BASE RATE:

It is the interest rate that is calculated by taking into account bank’s cost of deposits,

operating costs, Cash Reserve Ratio, Statutory Liquidity Ratio and profit margin

CHEQUE:

Cheque is an instrument in writing containing an unconditional order, addressed to a

banker, sign by the person who has deposited money with the banker, requiring him to pay on

demand a certain sum of money only to or to the order of certain person or to the bearer of

instrument.

CLEAN LOAN:

Clean loans are the loans granted by a bank without offering any security.

EQUATED MONTHLY INSTALLMENTS:

In this system of repayment, interest for the entire loan tenure is computed and added to

the principal amount. Then the sum is divided by the number of months in which the loan has to

be repaid. The result is called Equated Monthly Installments

HOLISTIC APPROACH:

This approach does not concentrate on deep financial analysis but concentrates on

securities against which loans are offered.

HYPOTHECATION:

Hypothecation is pledging of securities or other assets as collateral to secure a loan. It

does not transfer title but provides the right to sell the pledged property in the event of default



105 | P a g e

IRREVOCABLE LETTER OF CREDIT:

It is letter of credit that cannot be cancelled. This guarantees that buyer’s payment to

seller is received on time and for correct amount.

LETTER OF CREDIT:

A letter from a bank guaranteeing that buyer’s payment to seller will be received on time

and for correct amount.

LOAN:

An arrangement in which a lender gives money or property to a borrower, and the

borrower agrees to return the property or repay the money, usually along with interest, at some

future point of time.

MARGIN:

It the amount of collateral a customer deposits with a broker when borrowing from the

broker to buy securities

MORTGAGE:The charging of real (or personal) property by a debtor to a creditor as security for a debt

(esp. one incurred by the purchase of the property), on the condition that it shall be returned on

payment of the debt within a certain period

OVERDRAFT:

Over Draft occurs when the account holder withdraws more money from a Bank Account

than has been deposited in it. It is allowed against a host of other securities including financial

instruments like shares, units of mutual funds, surrender value of LIC policy and debentures etc.

http://www.investorwords.com/16192/arrangement.html

http://www.investorwords.com/2767/lender.html

http://www.investorwords.com/3100/money.html

http://www.investorwords.com/3900/property.html

http://www.investorwords.com/7518/borrower.html

http://www.investorwords.com/8794/agree.html

http://www.investorwords.com/4244/return.html

http://www.investorwords.com/7199/repay.html

http://www.investorwords.com/7199/repay.html

http://www.investorwords.com/4244/return.html

http://www.investorwords.com/8794/agree.html

http://www.investorwords.com/7518/borrower.html

http://www.investorwords.com/3900/property.html

http://www.investorwords.com/3100/money.html

http://www.investorwords.com/2767/lender.html

http://www.investorwords.com/16192/arrangement.html



OTHER SECURED LOANS (OSL):

These are the loans that are given on securities other than deposits.

REGISTERED EQUITABLE MORTGAGE:In this type of mortgage the lien lies in favour of lender for amount lent and is recorded in

revenue records. Borrower cannot sell mortgage without prior consent of lender.

REMITTANCE:

Remittance is making payment by non credit means. Examples of remittances include

cash, cheque, and electronic transfer.

SECURED OVEDRAFT:

These overdrafts are extended upon customers pledging their time deposits, properties as

collateral to the bank.

SECURITY:

Security is something deposited or pledged as a guarantee of the fulfillment of an

undertaking or the repayment of a loan, to be forfeited in case of default

UNREGISTERED EQUITABLE MORTGAGE:

I thi t f t titl d d f i bl t t b d it d ith th

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