Analysis of Retail Financing in Banking Sector With Special Referance to Syndicate Bank

7/27/2019 Analysis of Retail Financing in Banking Sector With Special Referance to Syndicate Bank

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CERTIFICATE

Certified that this project report titled ANALYSIS OF RETAIL FINANCING

IN BANKINGSECTOR WITH SPECIAL REFERANCE TO SYNDICATE BANK

5,*/0+0++./6 who carried out the research under my supervision. Certified further thatto the

!est of my "nowledge the wor# reported herein does not form part of any other project or

dissertation on the !asis of which a degree or award was conferred on an earlier occasion on this

or any other candidates.

$%&'C *+,- /- &F -$/%M0

M"'MANISH SINGH M"'MANISH SINGH


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/C"0&3-*M0

4efore we get into thic# of things , would li#e to add a few words of appreciation for the

people who have !een a part of this project right from its inception. he writing of this project

has !een one of the significant academic challenges , have faced and without the support

patience and guidance of the people involved this tas# would not have !een completed. ,t is to

them , owe my deepest gratitude.

,t gives me immense pleasure in presenting this report on /0/356,6 &F %/,3

F,0/0C,0* ,0 4/0",0* 6C&% , 6$C,/3 %F%/0C & 650-,C/

4/0"7.

,t has !een my privilege to have a team of guide who has assisted me from the commencement

of this project. he success of this report is a result of sheer hard wor# and determination put in

!y me with the help of my project guide. , here!y ta#e this opportunity to add a special note of

than#s for M"'MANISH SINGH1 who undertoo# to act as my mentor despite his many other

academic and professional commitments. is wisdom #nowledge and commitment to the

highest standards inspired and motivated me. ithout his insight support and energy this

project wouldn8t have #ic#9started and neither would have reached fruitfulness.

, also feel heartiest sense of o!ligation to M"' P'K Mitt$7 chief manager who helped me

in collection of data : resource material : also in its processing as well as in drafting

manuscript. he report is dedicated to all those people who helped me while doing this project.

RAJAN )ERMA

MBA II!d (e$"

LMIM 1LUCKNOW


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PREFACE

Master of 4usiness /dministration (M4/) $rogram is one of the most reputed professional

courses in the field of management. his course includes !oth theory : its applications as its

content of Curriculum. he vocational training is an integral part of the curriculum and its

purpose is to provide the practical e


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INDE8

SRNO.

TOPICS

ACKNOWLEDGEMENT

PREFACE

PAGE NO

CHAPTER-,

,' IINDUSTRY PROFILE 9-,,

*' IINDIAN BANKING STRUCTURE ,*-,:

;' BANKING AND FINANCIAL INSTITUTIONS ,9-;;

CHAPTER-*

.' SYNDICATE BANK HISTORY;.-;/


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E>e%uti?e @umm$"(

he ,ndian retail finance mar#et has witnessed a sea change during the last few years. arlier

,ndians were averse to the concept of availing credit to fund their purchases and !elieved in theconcept of saving and then spending. owever today there are a variety of consumer credit

products !eing literally forced upon consumers !y over>ealous lenders who have reali>ed the

huge latent potential of the !urgeoning ,ndian consumers. his has gradually led to a shift in the

psychology of ,ndian consumers who no longer consider credit as a social stigma and are more

than willing to fulfill their aspirations through the credit mechanism.

+ntil 1A years ago mainly non9!an#ing finance companies (04FCs) and %etail finance

companies (FCs) catered to the nascent ,ndian retail finance mar#et while commercial !an#sfocused on corporate lending. Commercial !an#s instead of lending to retail consumers directly

would provide funds to 04FCs and FCs which in turn would lend to retail consumers. he

mid BAs saw several 04FCs mushrooming to eed rate of ? per cent

(dis!ursements). he high growth rate !etween 1D9 and 2AA9A; can !e attri!uted to the fact

that ? years ago the retail finance mar#et was in its infancy with few people availing credit to

fund their purchases. *oing forward C%,6 ,0F/C e


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INDUSTRY PROFILE

BANK

/ !an# is a !usiness center that deals in financial services. / !an# is a place where your money is

safe9loc#ed and a secure place to dispose off your earnings. 4an#ing service in general includes

receiving deposit money lending money and processing transactions. he history of origination

of !an# goes !ac# a long way. 6ince then !an#s have influenced the economy of countries. ,ndia

has a num!er of !oth government underta#en !an#s as well as private ones.

Me$!i! o& B$!i!

/ !an# is an institution which deals in money and credit. hus !an# is an intermediary which

handles other peoples money !oth for their advantage and to its own profit. 4ut !an# is not

merely a trader in money !ut also an important manufacturer of money. ,n other words a !an# is

a factory of credit.

De&i!itio! o& B$!i!

/ccording to 6ection ?(1)(!) 4an#ing means accepting for the purpose of lending or investing

of deposits of money from the pu!lic repaya!le on demand or otherwise and withdrawal !y

che=ues draft and order or otherwise7.

De&i!itio! o& B$!i! Com$!(

6ection ?(1)(c) defines !an#ing company as /ny company which transacts the !usiness of

!an#ing in ,ndia7.

Fe$tu"e@ o& B$!i!

he following are the !asic characteristics of 4an#ingG

De$7i! i! Mo!e( he !an#s accept deposits from the pu!lic and advancing them as

loans to the needy people. he deposits may !e different types Hcurrent fi


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3imited a rating agency the pu!lic sector !an#s hold over E? percent of total assets of the

!an#ing industry with the private and foreign !an#s holding 1D.2J and @.?J respectively.

/s far as the present scenario is concerned the !an#ing industry in ,ndia is in a transition phase.

he $u!lic 6ector 4an#s ($64s) which are the foundation of the ,ndian 4an#ing system account

for more than ED per cent of total !an#ing industry assets. +nfortunately they are !urdened with

e


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I!di$! B$!i! St"u%tu"eG

he !an#ing system in ,ndia can !e !roadly divided into three categories vi>. the central !an# of

the country #nown as the %eserve 4an# of ,ndia (%4,) the commercial !an#s and the co H

operative !an#s. he %eserve 4an# of ,ndia is the supreme monetary and !an#ing authority in the

country and has the responsi!ility to control the !an#ing system in the country. ,t #eeps the

reserves of all scheduled !an#s and hence is #nown as the %eserve 4an#7. 4elow figure shows

the structure of ,ndian !an#ing.

S%#edu7ed $!d No! S%#edu7ed B$!@

+nder the %eserve 4an# of ,ndia /ct 1; !an#s were classified as scheduled !an#s and non H

scheduled !an#s. he scheduled !an#s are those which are entered in the 6econd 6chedule of

%4, /ct 1;. 6uch !an#s are those which have a paid Hup capital and reserves of an aggregate

value of not less than %s. ? la#hs and which satisfy %4, that their affairs are carried out in the

interests of their depositors. /ll commercial !an#s H,ndian and foreign regional rural !an#s and

6tate co Hoperative !an#s Hare scheduled !an#s. 0on H6cheduled !an#s are those which have not

!een include in the 6econd 6chedule of %4, /ct 1;. /t present there are only three non H

scheduled !an#s in the country. 6cheduled !an#s are divided into Commercial 4an#s and Co H

operative 4an#s. Commercial !an#s are !ased on profit while co Hoperative !an#s are !ased on

co Hoperative principle.

Commercial !an#s have !een in ee savings in ur!an

areas and ma#e them availa!le to large and small industrial and trading units mainly for wor#ing

capital re=uirements. /fter 1@ commercial !an#s are !roadly classified into nationali>ed or

pu!lic sector !an#s and private sector !an#s. he 6tate 4an# of ,ndia and its /ssociates !an#s

along with another 2A !an#s are the pu!lic sector !an#s. he private sector !an#s include a small

num!er of ,ndian scheduled !an#s which have not !een nationali>ed and !ranches of foreign

!an#s operating in ,ndia Hcommonly #nown as foreign e


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B$!i! i! I!di$

4an#ing in ,ndia originated in the first decade of 1Dth century with he *eneral 4an# of ,ndia

coming into e


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E$"7( #i@to"(

/t the end of late91Dth century there were hardly any !an# in ,ndia in the modern sense of the

term. /t the time of the /merican Civil ar a void was created as the supply of cotton to

3ancashire stopped from the /mericas. 6ome !an#s were opened at that time which functioned as

entities to finance industry including speculative trades in cotton. ith large e


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Du"i! t#e W$"@

he period during the First orld ar (11;911D) through the end of the 6econd orld ar

(191;?) and two years thereafter until the independence of ,ndia were challenging for the

,ndian !an#ing. he years of the First orld ar were tur!ulent and it too# toll of many !an#s

which simply collapsed despite the ,ndian economy gaining indirect !oost due to war9related

economic activities. /t least ; !an#s in ,ndia failed during the years 11 to 11D as indicated

in the following ta!leG

5ears 0o. of 4an#s that failed /uthori>ed capital (%s. ,n la#h) $aid up capital (%s. ,n la#h)

11 12 2E; ?

11; ;2 E1A 1A

11? 11 ?@ ?

11@ 1 21 ;

11E E@ 2?

11D E 2A 1

Po@t-i!dee!de!%e

he partition of ,ndia in 1;E had adversely impacted the economies of $unja! and est 4engal

and !an#ing activities had remained paraly>ed for months. ,ndia8s independence mar#ed the end

of a regime of the 3aisse>9faire for the ,ndian !an#ing. he *overnment of ,ndia initiated

measures to play an active role in the economic life of the nation and the ,ndustrial $olicy%esolution adopted !y the government in 1;D envisaged a mied and

it !ecame an institution owned !y the *overnment of ,ndia.

,n 1; the 4an#ing %egulation /ct was enacted which empowered the %eserve 4an# of

,ndia (%4,) to regulate control and inspect the !an#s in ,ndia.


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he 4an#ing %egulation /ct also provided that no new !an# or !ranch of an e


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1D

2AA1

2A12

D2@A

@A@?A

1D@A

2E?A

22EA

22

?;

;D

@DAA

1;1?A

1?AAA

Deo@it Mobi7i$tio!

$lanned economic development deficit financing and increase in currency issue have led to

increase in !an# deposits. /t the same time !an#s have contri!uted greatly to the development of

!an#ing ha!it among people through sustained pu!licity eation due partly to the eations and supply of credit !y !an#s were growing at a rapid rate

particularly after !an# nationali>ation in 1@.

*rowth of deposits in ,ndia of all scheduled commercial !an#s was as followsG

1?1 91E1 (2A years) 9EAAJ or E times.


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1E1 911 (2A years) 92@AJ or 2.@ times.

11 92A12 (12 years) 9EDAJ or E.D times.

Libe"$7i$tio!

,n the early 1As the then 0arasimha %ao government em!ar#ed on a policy of li!eralisation

and gave licences to a small num!er of private !an#s which came to !e #nown as 0ew

*eneration tech9savvy !an#s which included !an#s such as +, 4an# (the first of such newgeneration !an#s to !e set up) ,C,C, 4an# and -FC 4an#. his move along with the rapid

growth in the economy of ,ndia #ic#started the !an#ing sector in ,ndia which has seen rapid

growth with strong contri!ution from all the three sectors of !an#s namely government !an#s

private !an#s and foreign !an#s.

he ne


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BANKING FINANCIAL INSTITUTIONS

he ,ndian consumer is fast changing his ha!its !orrowing money to !uy the products

he wants not content with !uying what he can afford. he resultant consumer !oom is what

mar#et strategists e


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educational) on the assets side are the more important of the products offered !y !an#s. %elated

ancillary services include credit cards or depository services. odays retail !an#ing sector is

characteri>ed !y three !asic characteristicsG

1O Multiple products (deposits credit cards insurance investments and securities)I

2O Multiple channels of distri!ution (call centre !ranch ,nternet and #ios#)I and

O Multiple customer groups (consumer small !usiness and corporate).

Ret$i7 b$!i! i! I!di$

%etail !an#ing in ,ndia is not a new phenomenon. ,t has always !een prevalent in ,ndia in variousforms. For the last few years it has !ecome synonymous with mainstream !an#ing for many

!an#s.

he typical products offered in the ,ndian retail !an#ing segment are %etail loans consumption

loans for purchase of dura!les auto loans credit cards and educational loans. he loans are

mar#eted under attractive !rand names to differentiate the products offered !y different !an#s. /s

the %eport on rend and $rogress of ,ndia 2AA9A; has shown that the loan values of these retail

lending typically range !etween %s.2A AAA to %s.1AA la#h.

ithin the retail segment the %etail loans had the least gross asset impairment. ,n fact retailing

ma#e ample !usiness sense in the !an#ing sector.

hile new generation private sector !an#s have !een a!le to create a niche in this regard the

pu!lic sector !an#s have not lagged !ehind. 3everaging their vast !ranch networ# and outreach

pu!lic sector !an#s have aggressively forayed to garner a larger slice of the retail pie. 4y

international standards however there is still much scope for retail !an#ing in ,ndia. /fter all

retail loans constitute less than seven per cent of *-$ in ,ndia vis9P9vis a!out ? per cent for

other /sian economies 9 6outh "orea (?? per cent) aiwan (?2 per cent) Malaysia ( per cent)

and hailand (1D per cent). /s retail !an#ing in ,ndia is still growing from modest !ase there is a

li#elihood that the growth num!ers seem to get somewhat e


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4ac#drop of poor credit ta#e off !y !ig corporate 3ending to !ig corporate and

creating loan assets7 is no longer the name of game

higher middle class with rising -isposa!le ,ncome changing life style aspiration

and willingness to spend more for luil %ussia ,ndia and China

mentioned ,ndian demographic advantage as an important positive factor for ,ndia.

echnological factors played a major role. Convenience !an#ing in the form of de!it

cards internet and phone9!an#ing anywhere and anytime !an#ing has attracted many

new customers into the !an#ing field. echnological innovations relating to increasing use

of credit N de!it cards /Ms direct de!its and phone !an#ing has contri!uted to the

growth of retail !an#ing in ,ndia.


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reasury income of the !an#s which had strengthened the !ottom lines of !an#s for the

past few years has !een on the decline during the last two years. ,n such a scenario retail

!usiness provides a good vehicle of profit maation.

-ecline in interest rates have also contri!uted to the growth of retail credit !y generating

the demand for such credit.

Comprehensives range of financial products in retail banking

-eposit products

%esidential Mortgage loans

Credit cards

/uto finance

3oan for ,$&

3oan for !uying Mutual funds

,nvestment advisory services

$ersonal 3oans

Consumer dura!le 3oans

-e!it cards

4ill payment services

3oan against =uity shares

C"edit %$"d@ i! I!di$

hile usage of cards !y customers of !an#s in ,ndia has !een in vogue since the mid91DAs it is

only since the early 1As that the mar#et had witnessed a =uantum jump. he total num!er of

cards issued !y ;2 !an#s and outstanding increased from 2.@ crore as on -ecem!er 2AA to

;. crore as on -ecem!er 2A12. ,n view of this ever increasing role of credit cards a or#ing

*roup was set up for regulatory mechanism for cards. he terms of reference of the or#ing

*roup were fairly !road and the *roup was to loo# into the type of regulatory measures that are

to !e introduced for plastic cards (credit de!it and smart cards) for encouraging their growth in asafe secure and efficient manner as also to ta#e care of the !est customer practices and


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grievances redressal mechanism for the card users. he %eserve 4an# has !een receiving a

num!er of complaints regarding various undesira!le practices !y credit card issuing institutions

and their agents. 6ome of them areG

+nsolicited calls to mem!ers of the pu!lic !y card issuing !an#sN direct selling agents

pressuri>ing them to apply for credit card.

Communicating misleading N wrong information regarding credit cards regarding

conditions for issue amount of service chargesN waiver of fees giftsNpri>es.

6ending credit cards to persons who have not applied for them N activating unsolicited

cards without the approval of the recipient.

Charging very high interest rates Nservice charges.

3ac# of transparency in disclosing feesNchargesNpenalties. 0on9disclosure of detailed

!illing procedure.

Ret$i7 %"edit i! I!di$

,n view of its !ac#ward and forward lin#ages with other sectors of the economy %etail finance in

developing countries is seen as a social good. ,n ,ndia growth of %etail finance segment has

accelerated in recent years. 6everal supporting policy measures (li#e ta< !enefits) and the

supervisory incentives instituted had played a major role in this mar#et.

%etail credit has increased su!stantially over last few years !ut from a very low !ase. -uring the

period 19; outstanding %etail loans !y scheduled commercial !an#s and %etail finance

companies grew at a trend rate of 2 per cent. he share of %etail loans in total non9food credit of

scheduled commercial !an#s has increased from a!out per cent in 129 to a!out E per cent

in 2AA9A;. %ecent data reveal that non9priority sector %etail loans outstanding as on Fe!ruary

1D 2A12 were around %s. E; thousand crore which is however only D.A per cent of the gross

!an# credit. /s already pointed out direct %etail loans up to %s. 1? la#h irrespective of the

location now =ualify as priority sector lendingI %etail loans are understood to form a large

component of such lending. ,n addition %etail credit is also !eing provided !y %etail finance

companies which in turn are also receiving some !an# finance.

hus from miniscule amounts the e


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growing concern over its li#ely impact on the asset =uality. hile no immediate financial

sta!ility concerns ee

in %etail finance is relatively higher than the tic#et si>e in other segments li#e auto finance and

two9wheeler financeI hence an increase in the penetration of %etail finance will have a si>ea!le

impact on the growth of the retail asset finance mar#et.

Currently over A per cent of the !orrowers availing %etail finance are salaried employees and

the !alance are self9employed professionals li#e doctors chartered accountant architects etc.owever financiers have !een sceptical in lending to the self9employed !usiness class due to the

difficulty in accessing their credit worthiness. here is a huge potential demand for %etail finance

from this segment and C%,6 ,0F/C !elieves that if the lenders are a!le to specifically design

products to address the non9salaried !orrowers the growth in %etail finance will !e much higher

than C%,6 ,0F/C8s estimates !ased on the current product offerings. Currently C%,6 ,0F/C

e


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Contraction in the si>e of households.

%ise in the ur!an middle class population.

*reater accepta!ility of credit.

6hift towards owned houses as compared to rented houses

,ncreasing aspiration to own larger houses

-eclining proportion of cash component in sale transactions

De?e7ome!t@ i! t#e Ret$i7 &i!$!%e m$"et

-ecline in interest rates

,ncrease in loan tenures

,ncrease in loan9to9value ratio (3K)

%ise in the installment9to9income ratio (,,%)

Reu7$to"( @te@ $idi! t#e Ret$i7 &i!$!%e i!du@t"(

Fiscal incentives %egulari>ation of land records

$riority 6ector status for %etail loans

Imedime!t@"i@@ &o" t#e Ret$i7 &i!$!%e i!du@t"(

he following factors can prove to !e an impediment to the growth of the %etail finance mar#etG

%ising interest rates

%egulatory issues

6upply9side regulations

igh stamp duty

%emoval of ta< sops

,ncreased ris# weights


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Concerns on increasing 3Ks

/!ility to grow in ier , and ier ,, cities


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*rowth in demand for higher tonnageNhigher value vehicles due to highway development

leading to the emergence of the hu!9and9spo#e system of transportation

igher level of funding the vehicle cost (inclusive of cost of !ody)

,ncrease in penetration !y organi>ed players in used vehicle finance and refinance.

Hoe?e"1 &i!$!%ie"@ m$( &$%e t#e &o77oi! %#$77e!e@ i! t#e %omi!

(e$"@G


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,ncreased interest among the female population for unguarded two9wheelers

St"u%tu"e o& t#e i!du@t"(

Cometitio! to b"i! $bout $ @t"u%tu"$7 %#$!e i! t#e "et$i7 &i!$!%e m$"et

Currently the organi>ed retail finance mar#et is catered to !y 04FCs FCs and !an#s with

each of them vying for a share of the retail finance pie. hile 04FCs and FCs have the

advantage of having years of e


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u$d"$!t Ihis group includes those lenders who have the advantage of low cost of funds and

the !enefit of efficient loan origination and servicing s#ills. ypically new private sector !an#s

foreign !an#s and large FCs and 04FCs would fall into this =uadrantI for e


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players will have to ta#e the first loss in case of defaultsI also they will continue to have a ris#ier

profile.

Oo"tu!itie@ $!d %#$77e!e@ o& "et$i7 b$!i! i! I!di$

%etail !an#ing has immense opportunities in a growing economy li#e ,ndia. /s the growth story

gets unfolded in ,ndia retail !an#ing is going to emerge a major driver. /. . "earney a glo!almanagement consulting firm recently identified ,ndia as the second most attractive retail

destination of A emergent mar#ets.

he rise of the ,ndian middle class is an important contri!utory factor in this regard. he

percentage of middle to high income ,ndian households is e


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lead to a EJ growth in outstanding retail loans to R1A!n in F5 2A1. his would represent 9

?J of !an# credit and 1DJ of *-$ in that year. Mortgages would comprise @2J of the mar#et.

,n ,ndia the ratio of consumer financing to *-$ in ,ndia is 2.@ per cent while in developed

countries this ratio is normally ;A9?A per cent and in 6outh ast countries it is E91A per cent.

,ndia has a very youthful demography with more than ?A per cent of the population !elow 2?years as long as there are no e


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he %eserve 4an# has issued details guidelines on application of "5C norms in

0ovem!er 2A12.

Risk in Retail Banking

-eficiency in lending $olicies

,ncorrect product structuring

,nade=uate loan documentation

-eficiencies in credit appraisal

/!sence of post sanction surveillance and Monitoring

,nade=uate %is# pricing

,nade=uately defined lending limit and wea# collection strategies

6ystematic ris# arising out of macroeconomic soc#s

Su%%e@@ Fo"mu7$

,nnovative mar#eting strategies and promotional techni=ues along with the utili>ation of

internet.

ider -istri!ution 0etwor#.

3ow cost funding

3ow operative cost

3arge product portfolio

Cross selling

$roper credit appraisal MechanismN %is# assessment procedure

igh service level in terms of faster loan processing and dis!ursement

Fle


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4y the year 2A11 ,ndian !an#s are re=uired to adhere to the international standard of capital

ade=uacy norms under the new capital accord of 4asel ,,. he %4, has already ta#en steps to

implement two major components of the second pillar of 4asel ,, i.e. ris# !ased supervision and

prompt corrective action ($C/). he $C/ framewor# has already !een put into operation on an

e


34/97 SYNDICATE BANK


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INTRODUCTION

6yndicate4an#

ead &ffice G Manipal H ?E@1A;

BRIEF HISTORY


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S(!di%$te B$!was esta!lished in 12? in +dupi the a!ode of 3ord "rishna in coastal "arnata#a

with a capital of %s.DAAAN9 !y three visionaries 9 6hri +pendra /nanth $ai a !usinessman 6hri Kaman

"udva an engineer and -r. M / $ai a physician 9 who shared a strong commitment to social welfare.

heir o!jective was primarily to eing small savings from the community. he !an#

collected as low as 2 annas daily at the doorsteps of the depositors through its /gents under its $igmy

-eposit 6cheme started in 12D. his scheme is the 4an#8s !rand e=uity today and the 4an# collects

around %s. 2 crore per day under the scheme !an# was first in the field to start pigmy deposit scheme.

he progress of 6yndicate 4an# has !een synonymous with the phase of progressive !an#ing in ,ndia.

6panning over DA years of pioneering eed 4an#ing 6olution (C46) where!y ?AA of our strategic !ranches

with their /Ms are !eing networ#ed nationwide over a ; year period. he 4an# is pioneer among

$u!lic 6ector 4an#s on launching C46. &ur !an# has already achieved C46 implementation among allits !ranches. hus the !an# is 1AAJ C46 ena!led.

he first !ranch of the !an# started its operations in the year 12D at 4rahmavar in -a#shin "annada

-istrict. 4y 1E it had secured its mem!ership as a clearing house at Mum!ai. he primary o!jective

of the !usiness was to e


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referred to as the $igmy -eposit 6cheme.

/s time progressed twenty !an#s merged with the Canara ,ndustrial and 4an#ing 6yndicate 3imited

including the Maharashtra /pe< 4an# 3imited and 6outhern ,ndia /pe< 4an# 3imited. he name of

the !an# was changed to S(!di%$te B$! Limitedin the year 1@; and the head office of the !an#was shifted to Manipal. he !an# e


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I!t"odu%tio!

he 6even H6 model was developed !y Mc"inseys is an important part of the organi>ation. he

two persons who developed this model were om $eters and %o!ert aterman who were

consultants at the Mc"inseys. hey had pu!lished their E6 models in their respective articles

named he /rt of 'apanese Management (1D1)7 and ,n 6earch of


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04' S(@tem@G hese are formal and informal procedures that govern everyday activity covering

everything from management information systems through the systems at the point of contact

with the customer (retail systems call center systems online systems etc.).

Di$"$m S#oi! i%to"i$7 di$"$m o& M%Ki!@e(=@ 0=S Mode7

0S Mode7 o& S(!di%$te B$!

3,4' St"u%tu"e

he !an# has a well organi>ed three tier structure with a sound foundation of 211 !usiness

outlets and a well defined reporting architecture as the !ody to support. he corporate governance

which is the !reath sustaining the momentum is through a very talented !oard of directors

including government appointed directors employee and office representative directors guided !y

%4, Ministry of Finance *overnment of ,ndia which forms the superstructure. 4elow figure

shows the details structure of the 6yndicate 4an#.


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ORGANISATIONAL STRUCTURE

4&/%- &F -,%C&%6

CHAIRMAN MANAGING DIRECTOR

E8ECUTI)E DIRECTOR

*0%/3 M/0/*%6Po"t&o7io@

,' Co"o"$te C"edit Di?i@io! I 3CCD-I4 9' P"io"it( Se%to" C"edit Det

*' Co"o"$te C"edit Di?i@io! II 3CCD-II4 ,+' P"emi@e@ M$i!te!$!%e Det

;' Ret$i7 B$!i! De$"tme!t ,,' Ce!t"$7 A%%ou!t@ Le$7 Det

.' P7$!!i! De?e7ome!t Det ,*' Pe"@o!!e7 De$"tme!t


41/97

Bo$"d o& Di"e%to"@

Chairman : Managing -irector H6hri C. $. 6warn#ar.


42/97

Bo$"d o& Di"e%to"@

C#$i"m$! M$!$i! Di"e%to"

A@@i@t$!t Ge!e"$7 M$!$e"

E>e%uti?e Di"e%to" S%$7e )III

Ge!e"$7 M$!$e"

A@@i@t$!t M$!$e"

Deut( Ge!e"$7 M$!$e"

Di?i@io!$7 M$!$e"

M$!$e"

Se!io" M$!$e"

/nd having 21 *eneral Manager heading different departments in the organi>ation

;2


43/97

*4' Si77@

he !lend of management s#ills with employee orientation and employee s#ills with

organi>ational loyalty is uni=ue to 6yndicate 4an#. aving introduced successfully the Core

4an#ing 6olution (C46) with an entire in house team of ,.. and 0on H,.. officers itself is a

proof and trac# record for the s#ills of the prudent !an#er with the focus of migration of another

1?AA !ranches to the C46 is a !ig leap in this direction.

raining policies and programmes are suita!ly designed modified and updated on a continuous

!asis to upgrade the #nowledge levels and s#ills of its


44/97

De%i@io! m$i! @t(7e3 oe"@ o& di@o@$7

3.4' St"$te(

4eing one of the leading pu!lic sector !an#s with a culture of well managed private sector

professional institution the strategy of the !an# is to !e a premier among the peers and to eero !alance in rural and semi Hur!an areas and ensuring 1AAJ coverage

at all lead districts the goal under the financial inclusion which is !eing met. hus all the

products and services are targeted towards the a!ove focus including the core !an#ing and

internet !an#ing etc. which are introduced at a very nominal minimum !alance and no hidden

charges.

C#ie& M$!$e"

De@ M$!$e"3S%$7e II III4


C#ie& M$!$e"

A@@t' Ge!e"$7M$!$e"


CM o" AGM

DGM


CM o" AGM

DGM

GM

;;


45/97

3


46/97

304' S#$"ed )$7ue@

he core of a!ove @6s is the ground rules of shared values. ,t is li#e the invisi!le software which

wor#s on the a!ove @6 as the hardware and ma#es the institution wor# to the desired level of

output.

SWOT ANALYSIS

6& /nalysis refers to the strength and wea#ness of the company and opportunities and

threats in the environment. he investor should carry out a 6& analysis for the chosen

industry. a#e for instance increase in demand for the industrys product !ecomes its strength

presence of numerous players in the mar#et i.e. competition !ecomes the threat to a particular

industry. he progress in the research and development in that particular industry is an

opportunity and entry of multinationals in the industry !ecomes the threat to that industry.

/ SWOT A!$7(@i@ is a strategic planning tool used to evaluate the St"e!t#@ We$!e@@e@

Oo"tu!itie@ and T#"e$t@ involved in a project or in a !usiness venture or in any other

situation re=uiring a decision.

he re=uired first step in 6& analysis is the definition of the desired end state or o!jective.he definition of o!jective must !e e


47/97

T#"e$t@

/re eed 4an#ing 6olution (C46) which covers E?J of the total !usiness.

We$!e@@ o& S(!di%$te B$!

he !an# has implemented Core 4an#ing 6olution (C46) !y networ#ing 1?2 !ranches

spread across over 212A 4ranches covering over E?J of the 4an#s !usiness which need

to cover all the !ranches so as to cover 1AAJ of the !an#s !usiness.

;E


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, $olicy and 6trategy implementation !y the !an# has not !een covered to all the

!ranches. 6ome of the facilities provided !y the 6yndicate 4an# li#e /M Credit Card

-e!it Card are within a particular geographic area which need to !e eed and the !usiness may spread across the world if it diversifies some of the

!ranches in various countries. he !an# continues to identify new areas and activities that

re=uire attention as well as the ris# management s#ills processes and practices that need to !e

developed and strengthened.

he !an# is planning to adopt !est international practices in Credit %is# Management and 4asel

,, implementation !y outsourcing end to end solution vi>. on Hline appraisal system ris#

assessment ris# inputs estimates capital computation and %/%&C framewor#. he 4an# is also

in process of engaging reputed consultant to design and implement &perational %is#

Management Framewor#.

T#"e$t@ &o" S(!di%$te B$!

,n this technological and fast growing world the greatest threat for the !an# is to compete

withother pu!lic sector !an#s private !an#s and also foreign !an#s. 6yndicate !an# has to prove

that its uni=ue in providing various products and services to its customers. his is possi!le !y

continuous improvement and adopting technological advancements.

*overnment policies may go strict. More and more government policies ma#e the company

follow the rules which ultimately affect the company revenues.

,ntense competition in the mar#et.

;D


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Mar#et share redistri!ution.

Mar#et place is !ecoming smarter.

PRODUCTS AND SER)ICES PROFILE

3A4' Ret$i7 C"edit S%#eme

1. 6yndKidhya Hducation 3oan.

2. 6ynd3aghu+dyami H3oans for ntrepreneurs.

. 6yndKypar H3oans for raders.

;. 6yndswarna H3oans on *old.

?. 6ynd$igmy H3oans for $igmy -epositors.

@. 6ynd%ent H3oans against %ent receiva!les.

E. 6ynd+dyog H3oans for ntrepreneurs.D. 6ynd6enior9 $ersonal loan for pensioners

. 6yndKahan HFor $urchase of Kehicles.

1A.6ynd6uvidha HFor $urchase of Consumer -ura!les.

11.6ynd"isan H3oan for agriculturist.

12.6ynd6aral HContigency 3oans.

a. For 6alaried Class.

!. For 0on H6alaried Class.

c. /ll $urpose Credit 6chemes.

1.6yndKidyarthi9a stand !y overdraft facility for students of professional courses

;


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3B4' Deo@it S%#eme@ $t CBS B"$!%#e@

1. $remium 6aving /ccount (sweep out sweep in facility).

2. 6pecial $remium 6avings /ccounts.

. 6yndicate Floating %ate -eposit 6cheme.

3C4' Te"m Deo@it S%#eme@G

1. Fi


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E. &nline %ailway ic#et 4oo#ing.

D. estern +nion Money ransfer.

Det$i7@ o& P"odu%t@ $!d Se"?i%e@

3A4' Ret$i7 C"edit S%#eme

3,4'S(!d)id#($ Edu%$tio! Lo$!$urposeG $roviding financial support to deserving Nmeritorious students for pursuing higher

education in ,ndia and a!road.

ligi!ilityG /ll students studying specified courses in ,ndia or a!road.

0ature of facilityG -3 or &63.

QuantumG

For studying in ,ndia H ma


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$urposeG o meet the credit re=uirement of smallNmedium entrepreneurs traders small !usiness

and self9employersNprofessionals.

ligi!ilityG


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'ewel loans shall !e generally arranged to customers who are properly introduced to the !an#

and only through !ranches having the services of approved jewel appraisers.

6ecurityG *old ornaments of 229carat purity.

Quantum of loanG Ma


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$urposeG 6cheme for financing small and medium entrepreneurs.

arget *roupG Manufacturing units trading units 6ervice entities.

ligi!ilityG Credit re=uirement of the applicant partyNunit shall not !e more than %s.?A 3ac.

he annual salesNrevenue turnover of the applicant partyNunit shall not !e more than %s.2?A

3ac.

0ature of facilityG &verdraftNloans 4ill limits 3Cs N 4*s offered in one pac#age at competitive

rates within a predetermined overall limit (not e


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ligi!ilityG /griculturists clean loans may !e sanctioned to e


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ligi!ilityG 0on Hsalaried persons such as -octors ngineers /rchitecture 3awyers

Consultants 4usinessmen etc.

QuantumG 6u!ject to ma


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Following is the common feature of most of all housing loan scheme of different

nationalized banks like Syndicate bank(S!"!I#$S%& #i'aya bank(#I$$ )*+,

-*$!%

.urpose/

-Construction/purchase of existing/new house/flat/purchase of site for house

construction.

-For repairs/renovation/modification in existing house.

,ligibility/

$ll salaried / self-employed / business persons / agriculturists / Pensioners with

regular income.

0uantum of loan/

The quantum of loan is fixed on the basis of total proect cost less prescribed

margin !"#$ or %&$' or (" months gross salary in case of salaried class of

borrowers

Rate of Interest/

The borrower will have a choice of either fixed interest rate or floating interest

rate. Floating interest rate will be lin)ed to P*+, i.e. as when P*+ is revised,

interest rate will also stand revised.

Repayment/

Flexible repayment period options are available. quated monthly installments

for repayments are devised to enable the borrowers to structure and planned the

repayment of the loans.

Security/

ortgage of the property to be financed

?E


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Di&&e"e!%e@ betee! #ou@i! 7o$!@ i?e! b( t#e S(!di%$te b$!3S(!dNi?$@4 $!d )i$($

b$! 3)i$($ Home 7o$!4

Poi!t o&

di&&e"e!%e@S(!!dNi?$@ )i$($ Home Lo$!

Pu"o@e For ac=uiring a new house or

e


59/97

M$"i! 2?J of total project cost for

constructionNpurchase of new flat

or house up to ? years old.

AJ for ac=uiring house which is

a!ove ? years old.

AJ of the estimated cost of

additionNe


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Kijaya ome loan

Pe"iod

E>i@ti! $!d &o" 7o$!@

u to R@'*+'++ L$#@

Re?i@ed $!d &o" 7o$!@

$bo?e R@'*+'++ L$#@F7o$ti! Fi>ed F7o$ti! Fi>ed+p to ? years .2?J .?AJ 1A.AAJ 1A.E?J/!ove ? years to 1A

years

.E?J 1A.AAJ 1A.?AJ 11.2?J

/!ove 1A to 1? years 1A.AAJ 0o fi


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FeaturesG

/ll persons associations etc. who are eligi!le to open 64 accounts can open accounts under

this scheme.

/verage monthly !alance of %s. 1AAAAN9 to !e maintained in the premium saving account.

4alance availa!le in the account in e


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(a). /mount of depositG Minimum deposit accepta!le under this scheme is fied Deo@it 3FD4

/mount of depositG &pened with minimum of %s. ?AN9 and a!ove. F- can !e opened with

minimum of %s. 1AAAN9.

$eriod of depositG

Minimum period of 1? days and ma


63/97

3*4' So%i$7 Se%u"it( Deo@it 3SSD4

/mount of depositG / 66- account may !e opened with a minimum of %s. 1AAAN9 and in

multiples of %s. 1AAN9

$eriod of depositG 66- can !e opened for a minimum period of one year. 66-s are opened only

in completed =uarters su!ject to a ma /t 12J for %s. 1AAAAN9 discounted monthly interest isG (1AAAA W 12) N 1212 V.A1.

4ranches refer Master Charts on interest rates for payment of interest at discounted rates.

3;4' )i$@ C$@# Ce"ti&i%$te

he amount accepted under this scheme grows constantly with interest compounded on =uarterly

!asis and the accrued interest will !e paid along with the principal amount of the deposit on

maturity.

/mount of depositG /mount in multiples of %s. 1AAN9 is accepted.

@


64/97

$eriod of depositG -eposit will !e accepted for a minimum period of @ months and in completed

=uarter !eyond @ months su!ject to ma


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,nterest paymentG 6imple interest is paya!le at =uarterly intervals at the contracted rate. For all

the accounts opened prior to 2E 9A1 91D interest is paya!le at half yearly intervals.

$artial ithdrawalG

he depositor is at li!erty to withdraw partially in multiples of %s. 1AAAN9.

here is no restriction regarding fre=uency and num!er of

withdrawals.

ithdrawals are recorded in the deposit ledger and also on the deposit receipt.

0o penalty is charged on partial withdrawals (w.e.f. A1 911 91D).

0omination facility is availa!le.

-6 norms are applica!le.

3/4' ui% Mo!e( Deo@it

his is a term deposit scheme with overdraft facility which ensures availa!ility of funds to the

account holder without necessitating another visit to the !ranch.

/mount of depositG %s. 2?AAAN9 and a!ove in multiples of %s. 1AAAN9.

$eriod of depositG Minimum of one year and ma


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&ther ermsG

-6 norms are applica!le.

0omination facility is availa!le and credit facility.

3:4' Se!io" Citie!=@ Se%u"it( Deo@it

his deposit scheme with value added features was introduced !y the !an# for the !enefits of

senior citi>ens who are of a!ove the age of @A years including retired employees of the !an#

valid proof of age to !e produced !y the depositor.

/mount of ,nterestG Minimum of 1AAAN9 and in multiples of %s. 1AAAN9.

$eriod of depositG Minimum of 12 months and ma


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account transactions. (!). ffect transfer of funds. (c). &pen a erm -eposit. (d). $lace re=uests

for issue of Che=ue !oo#s demand drafts etc.

3;4' A!( B"$!%# B$!i!

4an#ing is no longer restricted to the physical !oundaries of your 4ranch premises. 5ou can (a).

*et cash payment of your Che=ue up to a limit in any other C46 4ranches. (!). *et collection of

your che=ues. (c). $urchase --s Ms etc. or get online transfer of funds.

3.4' Mu7ti Cit( A%%ou!t@

hese are accounts which can !e operated in various C46 centers. 5ou can opt for one of the five

variant of the accounts depending on the minimum average !alance.

(a). 6ynd H6ilver HCurrent /ccounts.

(!). 6ynd H*old HCurrent /ccounts.

(c). 6ynd H$latinum HCurrent /ccounts.

(d). Multi HCity HCorporate with sweep Hin and sweep Hout facility from &- account to current

account.

hese Multi HCity Che=ues can !e de!ited at any of our C46 networ# !ranches. &ther

transactions li#e purchasing --s fund transfer etc. could !e done for reasona!le charges.

3


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3/4' O!7i!e Co77e%tio! o& Di"e%t T$>e@

&ur 4an# collects Central 4oard -irect a


69/97

A"e$ o& Oe"$tio! G7ob$7 N$tio!$7 Reio!$7

6yndicate !an# is a major pu!lic sector !an# Hserves over 1millon Clinteles through 2EAA

!ranches spread over 2A states and four union territories with a !ranch at 3ondon and a

wor#force of 2DAAA.

he glo!al !usiness of the !an# e


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S(!di%$te B$! i@ $ Go?t' o& I!di$ u!de"t$i!' T#i@ #$@ mo"e t#$! // o& @#$"e %$it$7

6l.

0o.

Category 0o. of 6hares

held

J of share

holding.

A P"omote"=@ Ho7di!1 $romoters

*overnment of ,ndia ;@@D2D2 @@.;E

Foreign $romoters 0,3

2 $ersons acting in concert 0,3

Sub Tot$7 ;@?@D2D2 @@.;E

B No! P"omote" Ho7di!

,nstitutional ,nvestor (a). Mutual Funds and +, 1;A12EA 2.?E

(!). 4an#s Financial ,nstitutions ,nsurance

Companies (Central N 6tate *ovt. ,nstitutions N

0on Hgovernment ,nstitutions).

1D?AAA2 .?2

(c). F,,s. @D;@? 12.2;

Sub Tot$7 ?@;?;@E 1D.

; Ot#e"@

(a). $rivate Corporate 4odies ??2E 1.1;

(!). ,ndian $u!lic E1;2?ED; 1.@D(c). 0%,s N &C4s 11@1A A.22

(d). /ny &thers DD2@ A.1@

Sub Tot$7 E?;? 1?.2A

G"$!d Tot$7 ?21@D2D2 1AA.AA

Cometito"@ I!&o"m$tio!

For any industries there are num!er of competitors who themselves try to emerge with

innovative products and services to compete with other industries. hey provide products and

EA


71/97

services in order to satisfy the customers which are economy to their purchasing ha!its.

3i#ewise 6yndicate 4an# is also having its competitors li#e all $u!lic 6ectors 4an#s in ,ndia

and $rivate 6ectors 4an#s Foreign 4an#s etc. he main competitors of 6yndicate 4an# are 64,

and its /ssociates $unja! 0ational 4an# Canara 4an# Corporation 4an# +nit rust of ,ndia(+,) ,ndian &verseas 4an# etc. $rivate sector !an#s li#e ,C,C, ,-4, Centurian !an# also give

competition.

I!&"$@t"u%tu"$7 F$%i7itie@

Syndicate !an# has following infrastructure facilities

1. C46 4ranches

2. /Ms

. otal 4ranch Mechani>ation(4Ms)

;. Kideo Conferencing in & %& C&

?. ,nternet facility

@. -ata ware %etail and mining

E. %eal ime *ross 6ettlement(%*6) in C46 !ranches

D. Foreign e


72/97

0ote counting machine E;@0ote sorting machine ;?0ote !anding machine AA-es#top ultraviolet lamp 212A

and ultraviolet lamp E?A

WORK FLOW MODEL

/-K/0C6

E2

,nterview with manager

"now your customer

valuation of project

6anction of loan

-ocumentation

ransfer to his 6N4accounts

%epayment of interest


73/97

Di$"$m No',

his is the wor# flow model followed !y the !an# at the time of giving advances to their

customers. hich involves the following series of steps they areG

I!te"?ie it# t#e m$!$e"

/ny party re=uiring funds through !an# first has to tal# with the respective manager of a !ranch

of his area. &ne thing the manager has to see that the amount of loan he has to sanction is in his

E


74/97

Customer approaching the!an#N n=uiry

,ntroduction

-ocumentation

6aving Fi


75/97

-$&6,6

Di$"$m No ' *

his is the wor# flow adopted !y the !an# at the time of receiving the deposits from their

customers.

he first step in this process is customer approaching the !an#. hen the customers will have

surplus money with them they will !e loo#ing to invest that money in some place where they

can get good returns out of it. 4an# is one such place which accepts deposits from their

customers and pays interest on them. 6o the customers will !e loo#ing for that !an# which will

E?


76/97

pay them highest rate of interest on their deposits. &nce the customer identifies the !an# where

he is going to deposit his amount he has to go through the introduction stage were the customer

needs to !e introduced to the !an#. e may !e introduced to the !an# !y the customer or an

employee of this !an#. e is as#ed for providing documents li#e %ation card or any license foraddress age : income proof. &nce the account is opened (i.e. ither 6.4 aNc fi


77/97

EE


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R,S,$RC) *B,C1I#,/

The obective of the study is as follows0

To examine the essential dimensions of retail financing i.e. +1T+- +eliability,

assurance, tangibles, empathy and responsiveness of 23456C1T 7148 and its effecton customer s satisfaction.

To find out the level of perception of the customers from the retail financing offered

by the ban)s.

To )now which retail financing dimension of the ban) is performing well.

To identify which dimension of retail financing needs improvement so that the quality

of service of 23456C1T 7148 ban)s is enhanced

I+.*R1$!C, $!" SC*., *F 1), S12"/

he study would try to throw some insights into the ee the lacunae in the system and thus provide #ey areas where improvement isre=uired for !etter performance and success ratio. ,n the days of intense competition superiorservice is the only differentiator left !efore the !an#s to attract retain and partner with thecustomers. 6uperior retail financing ena!les a firm to differentiate itself from its competitiongain a sustaina!le competitive advantage and enhance efficiency.

SC*., *F S12"/

he scope of this research is to identify the retail financing of 650-,C/ 4/0".his research is !ased on primary data and secondary data. his study only focuses on thedimensions of retail financing i.e. %/%. ,t aims to understand the s#ill of the company in thearea of retail financing that are performing well and shows those areas which re=uireimprovement. he study was done ta#ing two !ranches of 650-,C/ 4/0" intoconsideration. he survey was restricted to the !an# customers in -elhi only.

ED


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R,S,$RC) +,1)*"*-*3/

"$1$ S*2RC,

.rimary "ata/

The primary data was collected by means of a survey. 9uestionnaires wereprepared and customers of the ban)s at two branches were approached to fill up thequestionnaires. The questionnaire contains "& questions which reflect on the type andquality of services provided by the ban)s to the customers. The response of thecustomer and the is recorded on a grade scale of strongly disagree, disagree, uncertain,agree and strongly agree for each question. The filled up information was later analy:edto obtain the required interpretation and the findings.

Secondary "ata/

6n order to have a proper understanding of the retail financing of ban) a depthstudy was done from the various sources such as boo)s, a lot of data is also collectedfrom the official websites of the ban)s and the articles from various search engines li)e;oogle, yahoo search and answers.com.

RESEARCH DESIGN

he research design is e


80/97

R,S,$RC) S$+.-,/

S$+.-I!3 .-$!/

2ince it is not possible to study whole universe, it becomes necessary to ta)esample from the universe to )now about its characteristics.

2ampling =nits0 Customers of 23456C1T 7148.

2ample Technique0 +andom 2ampling.

+esearch 6nstrument0 2tructured 9uestionnaire.

Contact ethod0 Personal 6nterview.

S$+.-, SI4,/

The wor) is a case of 23456C1T 7148, one of the largest ban) of 6ndian ban)ingindustry together representing over "# per cent of the mar)et share of 6ndian ban)ingspace. The survey was conducted in the city of 5elhi with two branches of 23456C1T7an), with #& customers as respondent.

"$1$ C*--,C1I*! 1**- 5ata was collected through a structured questionnaire.*i)ert scale technique is used. The format of a typical five-level *i)ert item is0

>. 2trongly disagree

". 5isagree

%. 4either agree nor disagree

?. 1gree

DA


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#. 2trongly agree

*i)ert scaling is a bipolar scaling method, measuring either positive or negativeresponse to a statement. The questionnaire consists of two parts. The first part consists

of three questions concerning the demographic information of the respondent such asthe name, age, educational qualifications and income. The second part consisting of >@questions exploring the respondentAs perception about the retail financing of23456C1T 7148. For evaluation of retail financing of 23456C1T ban) retailfinancing dimension of reliability, assurance, tangibility, empathy and responsiveness isused in order to evaluate the actual retail financing of 23456C1T 7148.

R,S,$RC) -I+I1$1I*!S/

The study is only for the 23456C1T 7an) confined to a particular location anda very small sample of respondents. Bence the findings cannot be treated asrepresentative of the entire ban)ing industry.

The study can also not be generali:ed for public and private sector ban)s of the country.

+espondents may give biased answers for the required data. 2ome of the respondentsdid not li)e to respond.

+espondents tried to escape some statements by simply answering neither agree nordisagreeD to most of the statements. This was one of the most important limitationfaced, as it was difficult to analy:e and come at a right conclusion.

6n our study we have included #& customers of ban) because of time limit.

D1


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ANALYSIS OF FINANCIAL PERFORMANCE

Fi!$!%i$7 A!$7(@i@ o& @(!di%$te B$! &o" t#e (e$" e!di! *+,;

6yndicate 4an# which has a !alance sheet si>e of %s.AA !illion is among the ten largest

state9owned !an#s in ,ndia in terms of asset si>e. he !an# operates through a networ# of 212@

domestic !ranches and one international !ranch. ,t has a dominant presence in the southern

region which houses ?DJ of its !ranches. he !an# made its first pu!lic offer in 1 when it

offered 12? million e=uity shares at par and raised %s1.2? !illion. ,t raised further capital of%s2.? !illion in 'uly 2A1 !y offering ?A million shares at a premium of %s;A per share. /s a

result the government8s sta#e has reduced to @@.?J.

Re%e!t de?e7ome!t@

6yndicate 4an# has revised its !enchmar# prime9lending rate ($3%) from 12.2?J to

1J in /pril 2A1.

4alance sheet growth remains strong

Margins decline 5o5 !ut e


83/97

A!$7(@i@ o& B$!=@ $!!u$7 "eo"t *+,*-,;

2yndicate 7an) is progressing well under all parameters,

G7ob$7 Bu@i!e@@G

*+,* *+,;

G7ob$7 bu@i!e@@ %s.1A?1; crores %s.12?2@ croresDome@ti% bu@i!e@@ %s.@212 crores %s.12A? crores

he *lo!al 4usiness of the !an# as on Ath'une 2A1 grew !y [email protected];J and stood at

%s.12?2@ crores as against %s.1A?1; crores as on Ath 'une 2A12. he !an# has

strategically opted for moderate growth during the current fiscal.

-omestic !usiness as on Ath'une 2A1 increased to %s.12A? crores from %s.@212

crores as on Ath'une 2A12 registering a growth of 2E.;J.

Deo@it@

D


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*+,* *+,;Tot$7 deo@it@ %s.@D2 crores %s.DA@D2 croresDome@ti% deo@it@ %s.?E crores %s.E@;DA crores

he 4an#s total deposits reached a level of %s.DA@D2 crores as on A th'une 2A1 from

%s.@D2 crores as on Ath'une 2A12 recording a growth of 2@.;AJ.

he growth of deposits in Q1 was 2.@AJ. he low cost deposits increased !y 2J to %s.

2@A;? crores as on Ath'une 2A1 from %s.2AE; crores as on Ath'une 2A12.

he 4an# will effectively leverage on the 2 Million plus accounts opened !y the 4an# in

2A1291 and new accounts opened in the first =uarter to accelerate the growth of low costdeposits.

he domestic deposits with the growth of 2E.?1J scaled to a level of %s.E@;DA crores

as on Ath'une 2A1 from %s.?E crores as on Ath'une 2A12.

Ad?$!%e@

*+,* *+,;

G7ob$7 "o@@ $d?$!%e@ %s. ;11; crores %s. ?1D;; croresDome@ti% $d?$!%e@ %s.@2 crores %s.;@@1? crores

he *lo!al gross advances as on Ath'une 2A1 increased !y 2?.;J to a level of %s.

?1D;; crores from %s. ;11; crores as on Ath'une 2A12. he C- ratio as on Ath'une

2A1 was placed at @;.2@J as against @;.EJ reported as of A th'une 2A12.

he domestic advances grew !y 2D.@?J to a level of %s.;@@1? crores as on A th 'une

2A1 from %s.@2 crores as on Ath'une 2A12.

Net "o&it

D;


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*+,* *+,;Net "o&it %s. 1DA.?D crores %s. 221.A crores

he net profit of the 4an# increased to %s. 221.A crores for the =uarter ended Ath'une

2A1 from %s. 1DA.?D crores for the =uarter ended Ath'une 2A12.

he year9on9year growth of net profit wor#s out to 22.;AJ. he growth is achieved from

the higher 0,, of %s. ;1 crores and despite higher operating e"

thereby recording a growth of ($.

The low growth is mainly due to increased deposit cost on account of hardening

of interest rate and higher depreciation of +s.@ crores for investment of around

+s.>%" crores incurred on account of accelerated C72 conversion in the last

year and in the first quarter of the current year.

Tot$7 I!%ome

*+,* *+,;

D?


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Tot$7 i!%ome %s.1?E crores %s.1 croresI!te"e@t i!%ome %s.121 crores %s.1D;@ croresP"o&it o! @$7e o& i!?e@tme!t@ %s. 2; crores %s. D crores

The total income of the 7an) increased to +s.> crores during the 9> of "&>%-

&@ from +s.>%#( crores against 9> of "&>"->%, an increase of ?(.%%$, mainly

contributed by the growth in interest income.

6nterest income for the quarter ended %&thEune "&>% improved to +s.>@?G crores

from +s.>"%> crores reported for the quarter ended %& thEune "&>". Hhile the

overall growth in interest income wor)s out to #&$, the increase in interest on

advances was to the extent of #@.?&$.

The profit on sale of investments was to the extent of +s. %@ crores for the

quarter ended %&thEune "&>% as against +s. "? crores earned for the quarter

ended %&thEune "&>". The fee based income increased to +s.>"( crores for the

quarter ended %&thEune "&>% from +s.>>& crores for the quarter ended %& thEune

"&>", increase by >#.?#$.

Net I!te"e@t I!%ome 3NII4

*+,* *+,;Net I!te"e@t I!%ome %s.?A@ crores %s.?;E crores

D@


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1he !II for the 5uarter ended 67th une 8796 grew by :; and stood at

Rs? crores as against Rs


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he C/% stood at 12.@2J as of Ath'une 2A12 well a!ove the stipulated mar# of J.

he ier , ratio was placed at @.2J as of Ath'une 2A12 and the ier ,, ratio stood at

?.EAJ.

Ot#e" Fi!$!%i$7 P$"$mete"@

i4 Retu"! o! A@@et@G he return on assets declined to A.DJ as on Ath 'une 2A1 from

1.A2J as on Ath'une 2A12. he ratio as on 1stMarch 2A1 was A.1J.

ii4 E$"!i! e" @#$"e 3EPS4$6 improved to %s. [email protected] as on A th'une 2A1 from %s.

1.D; as on Ath'une 2A12.

iii4 Boo )$7ue e" S#$"ehe 4oo# Kalue per share increased from %s. ?E.E; as on Ath

'une 2A12 to %s. E.? as on A th'une 2A1.

i?4 Em7o(ee P"odu%ti?it( 4usiness per employee improved from %s. ;.A; crores as onAth'une 2A12 to %s. ;.@ crores as on A th'une 2A1.

A!$7(@i@ o& b$7$!%e @#eet $!d P"o&it Lo@@ A%%ou!t o& t#"ee (e$"@ $@ o! ;,-

+;-*+,, to ;,-+;-*+,;

he !alance sheet of the 4an# could !e analy>ed on the !asis of the following important aspects

(%s in BAAA)

;,-+;-*+,, ;,-+;-*+,* ;,-+;-*+,;C$it$7 ;E1@D ?21@D ?21@DDeo@it@ ;@2;?@2? ?@2;;E ED@?@E

DD


89/97

Bo""oi!@ 22AA ;A??A 1E?2;I!?e@tme!t@ 2AEAE2 1E2@1AD; 2?2;A11;Ad?$!%e@ 2@E22A2D @;@@21 ?1@EA;DA

I!%omeI!te"e@t e$"!ed E?E@2E ;A?A;1A @A;A121?Ot#e" i!%ome ?@;??;1 ?@1@? @1D;E@Tot$7 .;**1,010: ./,*1;:1.9 //e!ded 2A@E? 21@?;DE DAA1@2Oe"$ti! e>e!@e@ 12@;2A; 1;;D1E 1D?E?2P"o?i@io!@ %o!ti!e!%ie@ ?12EE; ;E1?A1 @@@;?@Tot$7 ;9,91*01/0 .,*


90/97

,900/66&C/M //%- for promotion of rural and agricultural activities of 6yndicate

/griculture Foundation sponsored !y the !an#.

,90:,0-,/0 M%C/06 C/M4% //%- for outstanding contri!ution towards

welfare of the community.

,9:,0/,&0/3 ,0K6M0 /0- F,0/0C //%- for $riority 6ector lending.

,99+C/+-/%, C/%/0 6,0* MM&%,/3 0/,&0/3 //%- for %ural

-evelopment.

,999 F,CC, //%- for institutional initiative in the field of %ural -evelopment to

%+-6, jointly sponsored !y 6yndicate 4an#.

*++< 4an#ing echnology /ward for innovative use of 4an#ing /pplications on ,0F,0

awarded !y ,-%4 ydera!ad.

*++: 4an#ing echnology /ward awarded !y ,-%4 ydera!ad for the year 2AAD.

*+,;-,nstitute for -evelopment and %esearch in 4an#ing echnology (,-%4) esta!lished !y

%eserve 4an# of ,ndia has conferred 6yndicate 4an# 6pecial /ward for +se of , for Customer

6ervice in 6emi9+r!an and %ural /reas7. he award was given to 6hri C $ 6warn#ar Chairman

: Managing -irector 6yndicate 4an# !y -r. %/*+%/M *&K,0- %/'/0 on!le

*overnor %eserve 4an# of ,ndia on 6ept. A2 2A1 at ydera!ad.

A


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1


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FINDINGS

he findings of the study are follows

he 650-,C/ 4/0" has a well defined organi>ation structure.

here is a harmonious relationship is eation !etween employees and

management.

he employees are really motivated !y the management.

he employees are satisfied with the present incentive plan of the company

Most of the wor#ers agreed that the company is eager in recogni>ing and ac#nowledging

their wor#.

he study reveals that there is a good relationship e


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CONCLUSION

Retail !an#ing is the fastest growing sector of the !an#ing industry with the #ey success

!y attending directly the needs of the end customers is having glorious future in coming years.

%etail !an#ing sector as a whole is facing a lot of competition ever since financial sector

reforms were started in the country. al#9in !usiness is a thing of past and !an#s are now on

their toes to capture !usiness. 4an#s therefore are now competing for increasing their retail

!usiness.

here is a need for constant innovation in retail !an#ing. his re=uires product

development and differentiation micro9planning mar#eting prudent pricing customi>ation

technological up gradation home N electronic N mo!ile !an#ing effective ris# management and

asset lia!ility management techni=ues.hile retail !an#ing offers phenomenal opportunities for growth the challenges are

e=ually discouraging. ow far the retail !an#ing is a!le to lead growth of !an#ing industry in

future would depend upon the capacity !uilding of !an#s to meet the challenges and ma#e use of

opportunities profita!ly.

owever the #ind of technology used and the efficiency of operations would provide the

much needed competitive edge for success in retail !an#ing !usiness. Furthermore in all these

customer interest is of chief importance. he !an#ing sector in ,ndia is representing this and , do

hope they would continue to succeed in this traded path.


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BIBLIOGRAPHY

WEB REFERENCES

'@(!di%$teb$!'%o'i!

' moti?$tio!!$u"i#ub'%om

' #um$!"e@ou"%e@'$bout'%om

'7i?mi!t'%om

'@%"ibd'%om

Wie$die$'%om

BOOKS

;
http://www.syndicatebank.co.in/http://www.livmint.com/http://www.scribd.com/http://www.syndicatebank.co.in/http://www.livmint.com/http://www.scribd.com/


95/97

$!!,A2R,

02,S1I*!!$IR,

+espected 2ir/adam

, am student of '//0*,%/4/- -+C/,&0/3 %+6 *%&+$ &F

,06,+ conducting a survey on ANALYSIS OF RETAIL FINANCING IN BANKING

SECTOR WITH SPECIAL REFERANCE TO SYNDICATE BANK7. he following

statements relate to your feelings a!out the 650-,C/ 4/0". $lease show the e


96/97

4ame01ge0

ducational 9ualifications06trongly /gree 0on -isagree 6trongly/gree -isagree

@

1. 650-,C/ 4/0" has modern loo#ing=uipment

2. he !an#8s physical features are visuallyappealing

. he !an#8s reception des# employees are neatappearing

;. MMaterials associated with the service (suchas pamphlets or statements) are visuallyappealing at the !an#.

?. hen the !an# promises to do something!y a certain time it does so.

@. hen you have a pro!lem the !an# shows asincere interest in solving it.

E. he !an# performs the service right the firsttime.

D. he !an# insists on error free records.

. mployees in the !an# tell you e


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6trongly /gree 0on -isagree 6trongly/gree -isagree

1;. he !ehavior of employees in the !an#instills confidence in you.

1?. 5ou feel safe in your transactions withthe !an#.

1@. mployees in the !an# have the#nowledge to answer your =uestions.

1E. he !an# gives you individual attention

1D. he !an# has operating hours convenientto all its customers.

1. he !an# has your !est interests at heart.

2A. he employees of the !an# understandyour specific needs.

Documents

Analysis of Retail Financing in Banking Sector With Special Referance to Syndicate Bank